Bonham -- At a special called meeting of Bonham City Council Tuesday night, the city council briefly discussed the possibility of creating a Hospital Authority under Chapter 262 of the Texas Health and Safety Code.

The creation of a Hospital Authority, not to be confused with a hospital district, would not have tax implications. It would, however, allow the local hospital to become eligible for additional government health care funds earmarked by the Obama Administration to cover the gap in coverage between Medicaid and Medicare.

"As a stand-alone, for-profit hospital, Red River Regional Hospital would not be eligible to receive those funds," stated Jay Hodges, Chief Financial Officer at RRRH. "If we don't do it [create a Hospital Authority], the area health community will miss out on $8-$15 million over the next four years."

When a Hospital Authority is created, the hospital retains ownership of land and the facility, but a rather complicated contractual agreement regarding rented equipment is drawn up between the governmental entity responsible for creating the Hospital Authority - in this case the City of Bonham - and the hospital.

While the Texas Health & Safety Code Section 262 was enacted in 1989, the Hospital Authority concept actually dates back much further. For example, in 1973 Decatur Community Hospital (now known as Wise Regional Health System) was designated by the City of Decatur, Texas as a Hospital Authority to enhance community health care. Wise Regional is now affiliated with Baylor Health Care System.

Fredericksburg and Clifton are two other Texas cities which operate with a Hospital Authority agreement.

The City of Bonham has until October 31 to make a decision regarding the creation of a Hospital Authority.

At the meeting September 25, Bonham City Manager Bill Shipp noted this is a very complex, short-notice issue and recommended, as a matter of due diligence, that the city staff study the possible benefits and ramifications of such an agreement.

Bonham City Council took Mr. Shipp's advice and tabled the agenda item for further study.

In other business, Bonham City Council:

A) Approved the fiscal year 201202013 budget for Hotel/Motel Occupancy Tax funds

B) Adopted the fiscal year 2012-2013 operating budget of $13.2 million for the City of Bonham.

C) Established Water and Wastewater rates for the City of Bonham

D) Named Ruth Ann Thomas as a Bonham City Council member representative to the Tri-County Senior Nutrition Project) Meals on Wheels of Texoma) Board of Directors.

As expected, a stalemate continued to deter action by BEDCo. By definition, the local economic development corporation is charged using tax proceeds to stimulate local economies. While nearby cities such as Denison are experiencing revitalized downtowns largely as a result of teamwork and partnering with private business owners to improve downtown, Bonham Economic Development Corporation has operated without an Executive Director for three months. Bonham City Council tabled the 2012-2013 BEDCo operating budget Tuesday night as the debate continued over whether Bonham is ready to hire a full-time BEDCo Executive Director.

"My thought is that Bonham would be so much better off if BEDCo had a full-time Executive Director," said Corby Alexander, the last man to serve as BEDCo Executive Director, albeit in a part-time capacity. Alexander was given the difficult task of serving as both Bonham City Manager and BEDCo Executive Director.

Apparently, Bonham City Council member John Burnett disagrees. Mr. Burnett voiced concerns that the proposed salary structure being offered to BEDCo Executive Director applicants would result in a lack of funds to invest in future projects.