Mahaska County Supervisors pass Mahaska Health Partnership resolution

With a solid turn out at the public hearing March 7th, 2011, area residents were given an opportunity to express their views on MHP's desire to expand their current facility.

The Mahaska County Supervisors met in split session today. This was to allow for a public hearing on a resolution to designate Mahaska Health Partnership an Urban Renewal Zone to help pave the way for county sponsored general obligation bonds.

The morning session that started at 9:00 am saw Mahaska County Treasurer Sone Scott grant 2 seasonal hires, totaling 3 weeks, to help during tax time for the county.

The Supervisors also approved the resignation of Misty White from the Mahaska County Attorney’s Office effective March 11th.

In other business, Tassel Ridge Winery and Larry’s Berries and Vi’s Vines were approved on their applications for liquor licenses.

The public hearing on the County’s budget for 2011-12 was opened to public hearing at that time. No residents were in attendance, nor were any written statements by residents on file, and the public hearing was closed, and the budget was approved.

In other house-keeping matters, the Supervisors moved $270,000 into a reserve account.

The Supervisors adjourned until 6:30 p.m. for the public hearing concerning Mahaska Health Partnership.

At 6:30 p.m. the meeting reconvened and the first speaker was Jay Christensen, CEO of Mahaska Health Partnership. Christensen said that, “The real intent of our request to do this is not to add to anybody’s tax rolls. The intent of doing this is to prevent an additional 15 million dollars in interest cost that would be passed through, either to users of health care within Mahaska County or to the tax payers.”

Oskaloosa resident Jimmy Carter spoke at Monday evenings on his believe that this project should go to a vote of the people

Ervin Edel stepped up to the podium next stating, “I don’t feel 3 supervisors should speak for all the taxpayers of Oskaloosa and Mahaska County. I think it’s only fair that they give the people that use the hospital and the people that pay the bill the opportunity to vote on 24 million dollar expenditures, not 240 thousand. It’s not $100 dollars worth of groceries, it’s 24 million dollars, and I don’t think you and you and you (pointing towards each Supervisor) should have the right to speak for all of us.”

Edel’s sentiment was echoed by Mahaska County Supervisor Greg Gordy stating, “I felt a project of this size should go before the tax payers if their ultimately going to co-sign the note.”

Lawrence Rouw, former Mahaska County Supervisor, had a range of questions for Christensen. One of the questions was asking for clarification on the true name of Mahaska Health Partnership. Christensen explained, “Officially our name is Mahaska County Hospital doing business as Mahaska Health Partnership, it’s just a branding name that we started back in 2000. Our legal name on documents is Mahaska County Hospital doing business as Mahaska Health Partnership, or just Mahaska County Hospital for contractual purposes.”

Former Supervisor Lawrence Rouw (left) asked for some clarification on a few items from Jay Christensen (right), CEO of Mahaska Health Partnership

Rouw then stated,”In your general fund balance you have almost 18 million dollars.” Rouw continued,  “My question is why isn’t any of the hospital money being put into this project instead of asking for one hundred percent of it?” Christensen explained, “It is the 100 percent from the report.  Actually, we have about 2 million dollars worth (of cash) in the project. In addition to that, the fund balance that’s listed there (recent audit) includes a depreciated balance of equipment and other things.” continued Christensen.

Dr. Sreedhar Somisetty spoke in favor of the project. “For a guy who’s come from India, trained in Harvard and to come to Oskaloosa and practice here for 8 years, I just don’t see any reason for a person like me in the future to come to this town if we do not make this (expansion).”

Jimmy Carter then spoke stating, “I have a lot of concern about just 2 supervisors making the entire decision. I think as one citizen of this community, and I think there’s a lot of others that feel the same way, we need to go to a vote of the people.” continued Carter.

“Was Grinnell used in your scenario for bringing in overall costs? asked Carter of Christensen. Christensen and Carter clarified the terminology as market share. “Not significantly, because their not a significant factor in our market share right now.” explained Christensen.

Joe Warrick pointed out that in a recent election of the hospital board that this project was not brought up, nor did anyone run in opposition of the project as a candidate. “I think we’ve already voted on this issue by electing the board, the hospital board that we have in place. We elect the hospital board to take care of the hospital.” said Warrick. “I have confidence in the hospital board in doing what is right, they’ve looked at this thing, they’ve researched it, they brought expert people in to look at the numbers, crunch the numbers and see what has to be done.” continued Warrick.

Dr. Paul Riggs said, “This project might be a little different than the jail or the library or the school because we do have a revenue source.” expressing his support for the project.

Hospital Board Chairman Jim Hansen spoke Monday night expressing his thoughts on the project and also his support for the hospital.

Jim Hansen, Chairman of the Board of Trustee’s for Mahaska Health Partnership clarified that they are a government entity. “We’re able to raise taxes if we have to, we haven’t in 4 years, 5 years. But yeah, we’re able to raise taxes just like the Board of Supervisors is able to raise taxes, City Council is able to raise taxes, we’re all able to raise taxes.”

Currently the hospital has not raised it’s “asking” in 5 years, and Christensen has stated previously that raising taxes is not the hospitals intent.

“This community needs a new hospital.” continued Hansen. “We need it to be able to continue to provide strong health care to Mahaska County. And that is not an issue that’s gonna be on any ballot, Mr. Gordy or Mr. Carter who wants to have the people decide. What will be on that ballot is whether the county should issue GO bonds for this project, not whether the project should go forward. Whether the county should issue GO bonds. So when you go out and get your signatures on your petition, make sure you tell the people this isn’t about the project, this is about whether or not you, the people that sign this petition, are gonna pay an extra 15 million dollars. And if you sign it, and if the election goes through, and it ‘s a no vote, you win, you get to pay and extra 15 million dollars. That’s what the issue is here, and I want to make that clear.”

Dr. Matt Whitis also speaking in favor said “I guarantee you that if this project does not go forward, it’s gonna be much more difficult to recruit more practitioners to come to Oskaloosa to take care of you.”

With the meeting wrapping up, a few more individuals stepped forward showing their support for the hospital and it’s leadership. With those in attendance having spoken, the supervisors closed the public hearing and moved onto a vote.

In a recent hospital board meeting, the board and management continued to fine tune plans even after being turned down at that time for urban renewal. With Monday nights vote, a hurdle is crossed in helping the hospital continue it's project at what is projected to be 15 million dollars in savings on the interest.

In a 2 to 1 vote, reversing the previous vote of a different supervisor board, the resolution to designate Mahaska Health Partnership as an Urban Renewal Zone opening up more options for the hospital to finance it’s project, including asking the county to issue bonds in it’s name to help save fifteen million dollars in interest.

Weeldon and Rozenboom voted in favor of the resolution, with Gordy voting against the resolution.

After the vote, Christensen said, “This is just a first resolution, there will still be another hearing on actually issuing the general obligation bonds. If the vote goes in favor of the hospital and the County does issue general obligation bonds, Christensen says that construction could start in May.

“The people need to speak if they are going to co-sign a note, I think that’s bottom line. The only true survey is if the people vote and the people support it, if it’s a good project it will move forward.” stated Greg Gordy after the vote happened Monday night.

“This is the commitment we’re making to going threw the technical steps to get this thing moving forward.” stated Supervisor Ken Rozenboom after the vote.

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