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Seeks $800K — Nigel Hinds, chief financial officer of Florida Hospital-DeLand, talks to the Hospital Authority about the hospital’s request for an extra $800,000 in the coming year.
By Pat Hatfield
posted Jul 23, 2010 - 10:36:19am
Like local cities and Volusia County government, the West Volusia Hospital Authority depends on property taxes to fund its programs.
Also like the cities and the county, the authority is sweating the combination of rising expenses and falling real-estate values. When real-estate values go down, so do tax collections, unless the tax rate is adjusted.
To cover the cost of providing health care for West Volusia’s poor, the Hospital Authority is considering raising its tax rate, possibly by as much as 35 percent.
The Hospital Authority is an independent special-tax district, whose mission is to provide access to health care for low-income residents of West Volusia. A board of five elected commissioners oversees the authority, deciding how best to invest funds to ensure West Volusia residents get medical care, regardless of their ability to pay.
The authority funds clinics in Pierson, Deltona and DeLand, and gives grants to agencies like the Good Samaritan clinics, The House Next Door, Stewart Marchman-ACT, and the Volusia County Health Department, to help pay for programs that serve the poor.
This year, both needs and costs are increasing.
At its July 15 meeting, Hospital Authority commissioners looked at the figures.
The current year’s income is $15.62 million. The authority is on track to outspend that by the end of September.
If the authority continues to charge the same tax rate when the new fiscal year begins Oct. 1, its annual income next year will shrink to $13,133,600.
To keep next year’s income the same as this year’s, the Hospital Authority will have to raise its tax rate from 1.745 mills to 2.0818 mills. Currently, West Volusians pay about $1.75 per $1,000 of taxable property value. With the higher rate, that would go up to $2.08 per $1,000.
But Hospital Authority commissioners are thinking of going even higher.
If the authority increased its rate to 2.250, to match that of the Halifax Special Taxing District on the east side, the agency’s annual income would increase to $16.88 million.
And commissioners questioned whether even that would be enough to cover expenses.
Commissioner Juanita McNeil moved to look at a millage rate of 2.351.
Commissioner Tracy Lunquist seconded the motion, but said she wanted that rate lowered by the time the authority’s budget is set.
“We’re really not doing anything to control costs,” Commissioner Joe Guthrie noted.
Commissioners approved advertising the higher rate, with only Guthrie opposed.
Lunquist moved to exclude from the budget an additional $800,000 requested by Florida Hospital-DeLand. She called it a “last-minute” request without appropriate justification.
Lunquist said the hospital should have to provide the same documentation as any other applicant for funds.
Florida Hospitals regularly receives about $6 million a year from the Hospital Authority for the two West Volusia facilities.
Florida Hospital-DeLand spokesman Lewis Clark said the money is split with Florida Hospital-Fish Memorial in Orange City, with the DeLand hospital receiving $2.5 to $3 million a year.
He said the $800,00 is money the Hospital Authority agreed to pay the hospitals a few years ago. The agreement expires at the end of this fiscal year, and a renewal was requested.
The motion to deny the extra money carried 4-1, with Chairwoman Teresa Apgar opposed.
The Hospital Authority will meet to finalize its budget at 5:05 p.m. Thursday, Sept. 9, in the DeLand Police Department Community Room, at 219 W. Howry Ave.
The tentative tax rate will be advertised for public hearings, and will appear on the preliminary tax notices, called Truth in Millage or TRIM notices, that will be mailed to Volusia County property owners.
Once the tentative tax rate has been advertised, it can be lowered but not raised.
“There’s a good reason to advertise higher rates,” Al Powers of Dreggors, Rigsby & Teal told commissioners. The accounting firm serves as financial advisers to the Hospital Authority.
The final hearing on the Hospital Authority’s budget for the coming year is set for 5 p.m. Thursday, Sept. 23, also in the DeLand Police Department Community Room.
The hearings and meetings are open to the public, and public comment is allowed.
The next regular meeting is scheduled for 5 p.m. Thursday, Aug. 19, at the Police Department.
Reader Comments
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While there a percentage of undocumented people who participate in this program, the majority are people, just like your neighbors and mine, who have happened to fall on hard times. The demographics are evenly spread across the board. This is a good program and should be supported by the citizens of West Volusia County.
We all know talented, trained, capable people who cannot find a job right now. How do you think it goes for the mentally ill, or those who have no skills?
The hospital does not refuse to get money from ER patients, we are not permitted by law to decline emergency services to patients who are unable to pay. We still make attempts to get anything we can from patients, but patients are well aware that they don't have to pay.
If you want to make a real difference, volunteer your time at a free clinic, so we can reduce the number of people using the ER without payment.
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