Crittenden County OKs 1% tax to fund hospital

Crittenden County voters overwhelmingly approved a 1 percent sales tax Tuesday that will breathe life back into the financially troubled Crittenden Regional Hospital.

Officials anticipate the tax will generate about $30 million over the five years it will be collected. The tax will go into effect at the end of the year. Crittenden County already collects a 1.75 percent countywide sales tax.

Had the tax failed, the hospital in West Memphis would have likely closed by the end of the year, administrators said.

Complete but unofficial results are:

For 3,952

Against 661

"The people have given us a clear indication that we've got work to do," said Gene Cashman, the hospital's chief executive officer. "They understand the value and the need for an acute hospital."

Hospital administrators sought the tax in the spring after announcing the hospital was facing $30 million in debt. Cashman said an increase in uninsured patients, cutbacks in federal programs such as Medicaid and Medicare and a flurry of specialists either retiring or leaving the hospital in the past few years had created the debt.

The large number of voters who cast ballots in Tuesday's election surprised Crittenden County Election Commissioner Pat Henderson.

"That's a lot for any election," she said of the 4,613 voters. "Let alone a special election in the summer."

Cashman credited an aggressive campaign about the need for the tax that he and civic leaders presented to Crittenden County residents over the past two months.

Cashman said the recent closure of the hospital after a fire also gave voters an indication of what it would be like without a nearby medical facility.

Officials said a fire broke out in an unoccupied intensive care room on the second floor on June 6. Firefighters contained the blaze to the room, but water from the hospital's sprinkler system damaged floors, walls and ceilings. The system pumped 35 gallons of water per minute, Cashman said.

Administrators anticipate opening the hospital again July 6 after workers demolish the water-soaked drywall and rebuild it.

West Memphis Assistant Fire Chief Jeff Jones has said the cause of the fire remains under investigation.

Since the closure of the hospital, ambulance crews have transported patients to hospitals in Memphis, Forrest City and Jonesboro for treatment.

"It was an unfortunate event," Cashman said of the fire. "But it did drive the point home. I think it made them take a second look at not having a hospital. I think that drove the [heavy] turnout."

Cashman said hospital administrators will use the tax revenue to pay debts to vendors, recruit new physicians, upgrade the emergency room, provide new equipment and develop new health assessments for the county.

"The voters told us we have work to do," he said.

State Desk on 06/25/2014

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