In a scene that will be played out many times over the next two months, those gathered for a Coterie Club meeting Thursday evening were given an extensive tutorial on why it makes exceedingly good sense to build a new hospital to serve Allen Countians.
Mary Ann Arnott, Mary Kay Heard and Karen Lee, all members of the “Yes — Allen County Healthcare” campaign task force, gave a point-by-point explanation of why building a new hospital on another site would be much better than expanding and remodeling one nearly 60 years old.
They talked about the advantages of a one-story structure designed for efficient patient flow and care and examined funding that would pay for a new hospital while putting nothing more than minuscule burden on local taxpayers. They mentioned that interest rates on construction bonds were at a nearly historic low and that with construction companies hungry for work, attractive bids could be expected.
They reviewed a new hospital’s impact on the county, both as a health care center and from its economic role. Allen County Hospital has 160 employees paid about $9 million annually, with much of the money going directly into the local economy. Also, the proponents noted a new hospital would have a major role in efforts to attract businesses and industries to Allen County, as well as new residents, including doctors. Given the option, a doctor fresh out of medical school or one thinking about relocating would more likely choose a modern medical center over an antiquated hospital.
THE PRESENTATION also raised some questions, including, How are voters to know they are voting for a new hospital and not just another quarter-cent sales tax on Nov. 2?
In the referendum, the quarter-cent sales tax issue will be clearly defined, as all things appearing on ballots must be. Specific wording will tell voters that money raised would go for health care improvements in Allen County. In addition, the “Yes” campaigners intend to contact all registered voters before the referendum.
Funding for a new hospital would have four components.
Medicare reimbursement for new construction and profits generated by the hospital, to-gether anticipated at about $2.5 million, would carry much of the financial load for building and equipping a hospital. The third part would be up to $350,000 a year from Iola, the equivalent of a quarter cent of Iola’s sales tax made available through an agreement approved by city and county commissioners Monday.
The final portion would be the countywide quarter-cent sales tax expected to raise about $400,000 a year. It was noted that a quarter-cent sales tax applied to $100 worth of groceries was 25 cents and that retail expenditures totaling $10,000 in a year’s time would add $25 in sales taxes, or 7 cents a day.
The two sales tax components would be in place for 10 years and would meet operations demands for a new hospital.
A site for a new hospital also was mentioned.
Several are being considered but none will be made public immediately in deference to acquisition negotiations. However, it is known that a new hospital would be built either in Iola or near enough to be annexed: that is part of the city-county agreement for Iola to provide sales tax revenue for the project.
Also, a new hospital would require a minimum of 12 acres, with more better, and would be built easily accessible from and visible to a major highway. Highways 54 and 169 run through Iola. With space requirements and a site having to be outside a flood zone, somewhere on the east side of town would be most likely.
— Bob Johnson
