Hospital Funding: 04-19-03
from George Loegering

I took my Aunt Rose to the Mayo Clinic in Scottsdale, AZ. One wing or floor had a dedication to Angel and Paul Harvey who paid for the construction; nothing unusual about that and a great way for the clinic to get new infrastructure. However, I don't think I will ever see a hospital or wing that has a dedication "stolen from a trust fund".

Trust funds are collected for specific purposes such as public schools, roads, libraries and airports. A hospital, even though the facility is owned by government and not for profit, is not public infrastructure; it is a business serving the public. A hospital receives income for patient's services, grants, contributions and other sources. The income is used to pay expenses such as salaries, maintenance, interest, insurance, etc.. Planned surpluses are used to fund new facilities and equipment. When expenses exceed income, additional income must be generated or expenses reduced or the business ceases (Econ 101). More income can be generated from better utilization, better collections or higher charges or from subsidies. The Weaverville Hospital has been at a crossroad for many years and continues to need subsidies from the county general fund. If this is to continue indefinitely why don't we all cancel our health care budget/insurance and simply go to Weaverville for free health care? Does this seem reasonable?

I would prefer to help subsidize the hospital by supporting a hospital tax district. This would in the long-term help keep the hospital in business just as my gasoline taxes help to keep the roads repaired. It has been suggested by others appearing on this page that in addition to raiding trust funds we sacrifice other county services for the sake of subsidizing the hospital. Why don't the doctors and staff also donate a day of their salaries to keep the hospital open? If these were real individual options I am sure the criminal element would choose to save money by eliminating the sheriffs office & getting free care in Weaverville.

The writer last week complained that the hospital is old and that a threat of closure makes it difficult to attract staff and this might lead to a self fulfilling prophecy-gee that sounds like arguments put forward to get a new airport. The new airport will attract new business, the old one will not! Airport and community advocates went out and planned and raised grant funds for seven years so that the county will get the new airport at little & perhaps no cost to the general fund. Last weeks writer suggested that setting up a hospital district or other funding mechanism would take too long-so just it give the subsidy from general funds or from any money in any account .

Let's be realistic, trust funds are for specific purposes and can't be raided by wishful thinking, so road, airport, library and school projects funded by dedicated funds can not be used for a hospital project or to subsidize operational losses. Isn't this absolutely and abundantly obvious? The good news is that normal use of available trust funds for public infrastructure grows communities, which provides more patrons for the hospital and therefore better utilization and more net income. Perhaps a hospital district or other means of increasing income would be better to work for than whining about the success of other ongoing and necessary programs.