By unanimous decision, Fannin County Commissioners Court tentatively approved a proposal that would create a Hospital Authority in a move that could allow Red River Regional Hospital an opportunity to access millions of dollars earmarked to improve quality, expand care and eventually drive down health care costs in rural communities.
A Hospital Authority would be governed by a board of directors appointed by the county. It would then perform specific governmental functions as a separate political subdivision. A Hospital Authority would not have the authority to tax.
Although the final details will be hammered out in the week ahead by legal counsel representing the county and attorneys retained by Red River Regional Hospital, no major obstacles were voiced during a lengthy discussion Monday morning during a regular meeting of Fannin County Commissioners Court.
Fannin County Judge Spanky Carter repeatedly implored the county commissioners and members of the audience to speak up if they were aware of any specific liabilities the county could incur by creating a Hospital Authority, however nothing surfaced to deter Fannin County Commissioners Court from passing a motion to continue to explore the creation of a Hospital Authority.
Richard Glaser asked about the specifics of the proposal.
David Conejo, CEO of Red River Regional Hospital indicated it would take another week to prepare the contract, but both sides felt an open discussion in commissioners court Monday would be prudent before spending thousands of dollars in legal fees.
Lauri Blake asked about the City of Bonham's apparent hesitancy to enter into such an agreement with the hospital.
Mr. Conejo explained that anytime a city creates a Hospital Authority, that hospital is granted tax-exempt status, which, in this case, would have cost the City of Bonham tens of thousands of dollars of tax revenue. Conversely, by entering into a Hospital Authority agreement under the auspices of Fannin County, Red River Regional Hospital will continue paying taxes.
"I don't want to do anything to hurt Fannin County," remarked Judge Carter. "At the same time, I don't want to lose this hospital. I don't want that to happen on my watch. And I can't find a reason not to help this hospital."
Carter said that after months of scrutiny, the only downside he could find is that if the hospital was to issue bonds and subsequently default, that bond failure could reflect poorly on the county and possibly result in a slightly higher interest should the county go out for money to undertake a major project.
"That is the only negative I could find," stated Carter.
The initiative to create a Hospital Authority gained momentum when the federal government announced it would invest $29 billion to improve health care in rural Texas.
"What is at stake for the county, on the low side, is $8 million," said Conejo. "On the high side, $25 million. There is no mechanism, as the hospital currently exists, to access those funds."
If Fannin County enters into an agreement with Red River Regional Hospital, the county would appoint a Hospital Authority board of directors and the board would then assume responsibility for the hospitals. Both sides seem to prefer a seven-member board.
Residents mentioned Monday as being under consideration to serve on the board consist of Tom Mac Holmes of Trenton, Gene Danner of Boyd Community, Wendy Keeton of Telephone, Butch Henderson of Leonard, Clark Sanderson of Bonham and Chris Wilson of Honey Grove.
Judge Carter suggested that Rick Sheddy be included in the list of names under consideration for appointment to the board.
Commissioner Stan Barker made a motion that the county go forward with the proposed Hospital Authority, pending a thorough examination of the final agreement.
Commissioner Dewayne Strickland seconded the motion, which passed 5-0.