I have watched with great interest the discussion/debate regarding the Cook County hospital and care center tax subsidization. I don’t know of another hospital of this size in the state of Minnesota that receives an annual tax subsidy in excess of $800,000. This is not the fault of hospital management but of the accounting shifts between the hospital and the care center required under by Medicare. In essence the taxpayers of Cook County are subsidizing the federal Medicare program.
Cook County citizens deserve accessible health care that meets local needs without burdening property tax payers. The hospital board can accomplish both but needs to address the question of ownership. Can the tax burden be reduced or eliminated through a sale of the hospital and care center to a larger health system? There are many examples in the state.
My entire career of 36 years has been in health care administration in great Minnesota communities such as Granite Falls, Thief River Falls, New Ulm and currently Waconia. As CEO of the hospital in Waconia I oversaw the conversion of the city-owned hospital to a private nonprofit hospital in 2000. In the last 14 years we have doubled hospital employment and contribute annually over $350,000 to the city of Waconia to help support city services.
On Jan. 1, I oversaw the conversion of Sibley Medical Center (a small 25-bed critical access hospital) from city ownership to a private nonprofit. The hospital will get needed capital for building improvements, take hospital debt off the city balance sheet, and contribute $92,000 annually to city operations.
PERA benefits for the employees in these institutions were protected due to state legislation that was passed in 1999.
In these situations progressive leaders understood that protecting the local hospital did not necessarily mean owning it. The Arrowhead region is blessed with outstanding health systems: Essentia, St. Luke’s and Benedictine Health Systems. It would be worth the discussion with these organizations to see what might be in the best interest of the patients and taxpayers of Cook County.
As a seasonal resident I would be happy to donate my time to educate local officials on the conversion pros and cons. Cook County hospital has a window of opportunity to find a health system partner that meets the expectations of the local citizens. But that window won’t stay open forever.
Robert Stevens
Arrowhead Trail and Waconia
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