“We are not going away,” said Fairfield Hospital Board President, George Robinson. “But, we are asking taxpayers for some help.”
On the ballot these next two weeks is a proposition to raise the tax rate cap for Fairfield Hospital District (FHD).
The cap was set at 12 cents when the hospital district was first created in 1987, which was the state average at the time.
Now, for the first time in thirty years, FHD is requesting that voters approve raising the tax rate cap “not to exceed 25 cents on each $100.00 valuation of all taxable property in the district.”
Twenty-five cents is currently the state average for hospital districts in Texas.
The actual tax rate will not be set until the Fall, after property appraisals have been completed.
It is important to note that, historically, Fairfield Hospital District has operated below the tax rate cap, setting the tax rate as low as 4.7 cents in 2014 and 2015, and 5.3 cents in 2016.
“Every board member is a property owner,” said Board Advisor Tony Price, emphasizing that when the FHD governing board raises the tax rate, they are taxing themselves.
The tax rate was raised in 2017 to 11.3 cents to assist with the transition to the newly created Freestone Medical Center, after East Texas Medical Center (ETMC) pulled out of a ten-year lease of the hospital facilities, several years early.
“We knew we would be operating in the red the first couple of years,” said Board President Robinson.
The transition from a lease agreement with an established hospital company, to creating an entirely new hospital entity from scratch, required a significant investment that first year.
One of the largest initial expenses was purchasing a new medical records system, costing $1.6 million.
Then, new leadership had to be hired, which today includes Chief Executive Officer (CEO) John Yeary, Interim Chief Financial Officer (CFO) Pam Gallagher, and Chief Nursing Officer Nicki Hagen.
Perhaps the biggest hurdle in the beginning was in operating their first nine months without receiving reimbursement from Medicare.
Even though FHD had been preparing for the transition since 2015, Freestone Medical Center was not allowed to file the necessary paperwork for the name change with the federal government until the official changeover took place on January 1, 2017.
Fortunately, the prior relationship with ETMC has provided Fairfield Hospital District with an updated Emergency Room, new Health Clinic, and new Hospital Wing with larger room to accommodate patients’ families.
“We have a $16.4 million facility that is paid for,” said FHD President Robinson, pointing out that the hospital district currently has no debt.
However, Robinson explains that this asset cannot be used for taking out a loan for expenses in operating the hospital itself. It may only be used for capital expenses, which will not be a need for Fairfield’s hospital anytime soon.
“Our goal for the hospital campus is to operate independently of taxpayers,” adds Robinson. “We will get there. We just need the taxpayers help.”
Hospital Services
Of the seven hospitals released by ETMC, Freestone Medical Center is the only one that has remained open continuously.
According to CEO John Yeary, the hospital in Crockett recently opened again, after its third closing. All other facilities have permanently closed.
Looking at the numbers, FMC’s Emergency Room sees an average of 700 clients per month (8,400 annually). The Clinic averages 1,700 clients per month (20,400 per year). The average hospital population consistently averages 3.5 patients per day.
Freestone Medical Center facility includes:
–Thirty-seven inpatient beds
–Nine-Bed Level IV Trauma Center (available year-round 24/7)
–Radiology, Laboratory, Respiratory Therapy, Outpatient Surgery, Cardiac Rehab, and Skilled Nursing (inpatient rehabilitation)
The Freestone Health Clinic features:
–Primary Care Health Clinic
–Open for extended hours from 7:00 a.m. to 7:30 p.m., Monday through Friday
–Newborns, Pediatrics, Adults, Women’s Health, and Geriatrics
Specialty care is also available with one of the top podiatrists in the country is in Mckinney at roberthadfield.com. During select hours from visiting physicians for Cardiology, General Surgery, Orthopedic Surgery, Podiatry, and Neurosurgery.
Opened in December 2018, the Freestone Health Clinic at Teague currently offers Primary Care for Pediatrics, Adults, Women’s Health, and Geriatrics.
Two rooms are being utilized inside Pharmacy Plus at 600 Main Street in Teague. Once renovations are complete, this clinic will have a capacity of six exams rooms.
Importance to Local Economy
“If you want to watch a rural community die, kill its hospital,” begins an article in the Huffington Post about the crisis surrounding rural hospital closures.
According to Freestone Medical Center CEO Yeary, “Hospitals drive the local economic engine.”
In rural communities, hospitals are the second or third major employer, following the local school district, and in some instances, the county government.
A thriving hospital attracts healthcare related businesses to the local community, as well as increasing the need for support services. Specifically, Freestone Medical Center uses local sources for such things as food purchases, lawn service, repair, and utilities.
Hospitals also facilitate economic development. According to FHD Board Advisor Tony Price, when major employers consider moving into an area, they look for communities with excellent school systems, good infrastructure, and a viable hospital.
Election Info
Fairfield Hospital District is asking residents to consider Proposition A, which will increase the “maximum rate of annual taxes imposed for hospital purposes to a rate not to exceed 25 cents on each $100.00 valuation of all taxable property in the district.”
A vote “For” will approve an increase in the tax rate cap to the current state average.
A vote “Against” will keep the tax rate cap the same as when the hospital district was first created, thirty years ago.
FHD follows the boundary of the Fairfield Independent School District. If you pay property tax for these entities, you are eligible to vote in this important election.
Early voting started this Monday, April 22nd and will continue each weekday through Tuesday, April 30th. Polls are located at Fairfield ISD Administration office and are open from 8:00 a.m. to 4:00 p.m.
Election Day is Saturday, May 4th and will be held at Fairfield City Hall. Polls will be open from 7:00 a.m. to 7:00 p.m.
Fairfield Hospital District Board includes President George Robinson, Vice-President Jeff Taylor, Secretary Andy Awalt, Board members Carman Mannen, David Lott, Brent Moore and Vance Oglesbee, and Advisor Tony Price.