Vote November 12, 2013
There will be a special election November 12, 2013 to approve a vitally important measure for Share Medical Center.
This is not a new tax. This is not a tax increase.
The Alva Hospital Authority and Alva City Council are calling upon municipal voters to consider lifting the restricted use of the already existing hospital sales tax.
Here are some facts about the situation, the measure and the need for revising this tax:
- 36 Oklahoma hospitals receive public operating support in the form of local, county, or federal subsidy, i.e. tax dollars for operations.
- SMC does not receive tax dollars that can be used for hospital operations.
- SMC currently receives 1.25% local sales tax for capital building improvements at the hospital.
- The need for operating support currently exceeds the need for capital improvements at the hospital.
- Since 2006, there have been approximately $13 million in capital hospital improvements (approximately $9 million principal balance remaining).
- Payments on capital debt are secured with, and will continue to be secured with the sales tax.
- The measure allows the excess, after debt payments, to be used for hospital operations and maintenance.
- Medicare and commercial insurers have cut hospital reimbursement by approximately $60,000 per month.
- The hospital has increased patient volumes and revenues, but not enough to make up for those cuts.
- The hospital decreased spending by approximately $1 million from 2010 to 2012; still not enough to make up for recent cuts in Medicare and insurance reimbursement.
- This measure ensures additional operating revenue for the hospital without placing additional burden on taspayers.
- THE CITY SALES TAX RATE REMAINS THE SAME.