KeysNet

New hospital tax possible for Marathon

The money generated would go to buy equipment when HMA leaves

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rmccarthy@keynoter.com

Posted - Tuesday, November 10, 2009 11:00 PM EST

The Fishermen's Hospital Board of Trustees will seek to raise at least $7.5 million in taxpayer dollars over the next five years to keep a hospital open in the Middle Keys.

Fishermen's tenuous 25-year relationship with Health Management Associates, which operates the hospital, is set to end in 2011, and board member David Rice says the hospital's financial future is up in the air.

"Quite frankly, I think a lot of the people in the community have not been overjoyed with the last 25 years under HMA. If we're going to have a community hospital responsible to the community, [the board has] to be involved," Rice said. "Over the 25 years, HMA has become the proud owner of all of the equipment in the hospital. We're going to have to have some working capital to" purchase or replace it.

That capital would come in the form of a Middle Keys hospital taxing district, with each property owner paying a .685 millage rate for five years. County Mayor George Neugent told the Keynoter the district would run from the Seven Mile Bridge up to, but not including, the city of Layton.

For the owner of a $300,000 home in that area, that adds up to an additional $205.50 in taxes per year.

Baptist Health South Florida, which operates Mariners Hospital in Tavernier along with major hospitals in Miami-Dade County, considered stepping in after HMA's lease expires at Fishermen's or buying out the remainder of the lease. But in February, after a lengthy due diligence period, Baptist officials said they were no longer interested.

Baptist backed out for many reasons, including the economic downturn, millions of dollars worth of potential renovations and equipment purchases, and the loss of one of the top orthopedic surgeons in the country in Robert Loeffler.

Loeffler now practices in Key West and does surgeries at Lower Keys Medical Center -- an HMA-managed hospital.

Rice said a taxing district may rekindle Baptist's interest in taking over Fishermen's, but the board is exploring more "community-based" management options with other companies, as well.

"Baptist was the one I think the most effort has been put into. We're looking at management firms that manage small rural hospitals and do so successfully," he said.

The taxing district would be modeled after those in the Lower and Upper Keys. The Lower Florida Keys Hospital District and the Upper Keys Health Care Taxing District are active but haven't collected taxes in years.

The first step in the Middle Keys would be for the Monroe County Commission to approve a resolution supporting the taxing district. It would then go to the state Legislature for approval before going to voters in a local referendum.

"We don't want to lose our hospital. I wouldn't say the house is burning down, but that is at least one possibility here," Rice said, referring to the hospital closing. "That is what we would definitely want to prevent."

The County Commission will take up the issue when it meets Nov. 18 at the Murray E. Nelson Government and Cultural Center in Key Largo.

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