POSITION PAPER ON DISTRICT HOSPITAL REQUEST FOR FURTHER TAX REVENUE

By Nizar "Nick" Yaqub

THE HOSPITAL'S BOARD MUST SEEK PUBLIC INPUT AND ESTABLISH A CLEAR CRITERIA FOR REQUESTING FURTHER TAX REVENUES. IT IS THE BOARD'S FIDUCIARY OBLIGATIONS TO PROTECT THE DISTRICT'S TAX PAYERS

The hospital claims that voters would benefit from larger safer hospital facilities. Voters were not convinced that they should pay additional taxes for a larger hospital. What the hospital offered should not trigger increase of voters' taxes. For public hospitals to justify additional tax revenue, they must show direct or indirect public benefit. Providing facility with regular prevailing charges like any other provider should not burden tax payers, since there are no additional benefits offered.

Public hospitals may only seek additional tax revenue only if they intent to offer facility "PLUS" additional benefits such as reduced out of pocket charges, offering free preventative services or through a scheme that reduces health premium to constituents.

The SVMH Board should consider going to the voters for additional tax revenue only if they can demonstrate "PLUS" benefits to the community other than expansion of regular chargeable facilities. Since such facilities are offered by competitive private market. The Board must show fiduciary responsibility and fiscal awareness of their constituents healthcare needs and help them coping with ever increasing costs. Seeking taxation without real healthcare benefits is abrogation of the Board fiduciary duties.

TAXATION WITHOUT REAL BENEFITS SHOULD BE AVOIDED AT ALL COST BY ELECTED OFFICIALS.