Here’s why Tri-Citians still need the Kennewick Public Hospital District at Trios Health

A recent letter to the editor raised questions regarding the Kennewick Public Hospital District (KPHD) operations and its board. Within the limitation of the space allowed by the Herald, these are abbreviated answers to the questions. For more information about what led to the KPHD bankruptcy, readers can go to the KPHD webpage at kenkphd.com.

Questions raised in the article and KPHD’s response:

Why am I still being taxed if you don’t have a hospital to run?

A condition of the sale of Trios Hospital was a requirement to pay 80% of the property tax to the current owner, LifePoint, who is obligated to maintain the hospital and a broad range of medical services.

Why not dissolve the hospital district or refuse to pay 80% of its tax revenue to LifePoint?

A district cannot be dissolved until all its debts are paid off, including the long-term obligation to LifePoint. A Court order would assess a tax levy until the debt is paid.

How much would I save in taxes if there wasn’t a hospital district?

Nothing. The district is among a group known as junior taxing districts. If one falls out, that district’s money is merely shared among the others. Presently, the hospital collects $37.59 on a home with a value of $340,000.

What is the hospital district doing with the taxes it receives?

Eighty percent of the tax revenue goes to LifePoint under the Community Care Agreement. The other 20 percent goes to KPHD for unmet health programs that help, among others, the aging, disabled and low-income in the community. To provide such care, the KPHD operates under the name Two Rivers Health.

Didn’t we vote twice not to build a new hospital?

It was generally agreed the then 66-year-old hospital was not capable of providing 21st-century care. Many voters decided Kennewick needed a new hospital but did not want it built with increased property taxes. Recognizing the need in the community, the Kennewick Public Hospital’s board explored several financing options and eventually signed a contract with a private developer to construct and lease to the district the new Southridge facility.

How did the hospital end up so deep in debt?

The revenue was not sufficient to cover expenses because:

The hospital was built at a time when private insurance, Medicare and Medicaid reimbursements were changing and requirements to provide charity care were increasing.

In addition, besides the construction of a free-standing emergency room facility close to the new hospital, doctors were building their own surgical units.

As required by insurance companies, and changes in health care, hospital stays were getting shorter, and expenses had significantly increased.

Smaller hospitals were the hardest hit, evidence Walla Walla, Sunnyside, and Yakima hospitals either closing or going bankrupt. Currently, there are 14 districts in Washington that no longer oversee hospitals.

Is Trios needed?

Yes. The issue of need was raised during the bankruptcy hearing and the judge ruled that Trios provided “critical care services for which there is not adequate capacity at other nearby facilities.” The recent Covid pandemic was a glaring example of need.

I again urge people to read the more thorough paper on the hospital web site kenkphd.com.

Whether we agree or disagree with the bankruptcy, or with the determination of the court, or the implementation of the plan ordered by the court, the district has a legal and binding responsibility to help with the expenses of Trios and fulfill the unmet needs of the community.

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This story was originally published March 28, 2022 at 10:55 AM.