Sale of hospital means tax loss

By Rupert Howell
Although some excitement concerning the sale of the local medical facility, Merit Health, has been expressed by employees and others, Batesville and Panola County officials have expressed concern over the loss of approximately $336,296.18 in tax revenue if the pending transaction with non-profit Curea Health.
Batesville mayor Jerry Autrey said Wednesday he was asked to sign a letter of recommendation for the purchase as Curea Health is looking for a United States Department of Agriculture loan to fund the purchase.
Autrey presented figures that indicate Batesville will lose $59,484.86 in taxes not including a new building that would have been on tax rolls this coming year.
Mayor Autrey said it is a decision that should be made with his board of aldermen concerning the letter of recommendation.
Likewise county supervisor board president Cole Flint said he would bring the matter up at November 7 meeting in Sardis.
“It’s damned if you do and be damned if you don’t,” Flint said while noting that he has discussed the sale to Curea Health with health care professionals who said the sale would be good for the hospital.
“We all want the hospital to be here,” Flint stated while pointing toward the recent closing of the neighboring Quitman County Hospital in Marks.
Panola County was paid $138,967.62 in taxes by Merit Health in January 2016 with Flint stating, “That’s a substantial amount of money lost to the county.”
South Panola School District received about the same amount, or $137,843.70 from taxes from the medical center.
Flint explained recovering from the loss of funds to the county and raising millage to cover the school’s lost revenue would be a recurring expense not easily overcome.
South Panola Superintendent Tim Wilder said, “As a resident . . . I’m proud that we have a hospital which is an attractive option to invest in as Curae Health has done with Merit Health Batesville. As the superintendent of the South Panola School District, I’m concerned with the revenue the school district, as well as the city and county, is losing due to the sale as it relates to the education of our students.”
Flint suggested the entities involved might get together and consider some type of payment in lieu of taxes to help offset the lost revenue. He mentioned a similar situation with tax-exempt South Mississippi Electric Power Association who pays hundreds of thousands of dollars to the county and school district in lieu of taxes annually.
According to Curea’s website, “The nation’s rural healthcare infrastructure is at risk. Not-for-profit health systems and investor-owned companies see rural markets as high risk ventures, leaving few companies interested in the survival of rural health care facilities.
Curae Health . . . was formed to help address the needs of rural healthcare according to the website which also lists their primary goals as owning and operating community hospitals while providing high quality care and seeking strategic affiliations to ensure the hospital’s success.
Curae Health works with small to medium sized sole community providers their website states.