Allen County commissioners approved putting a sales tax extension that supports Allen County Regional Hospital on the ballot this November. The quarter-cent sales tax comes before voters for renewal every five years.
Established in 2010, the county-wide sales tax initially helped fund construction of the new hospital on North Kentucky Street. Since then, the sales tax has paid for improvements to the hospital and the Medical Arts Building at 826 E. Madison Avenue in Iola.
In July 2020, the hospital was leased to Saint Luke’s Health System. As part of the agreement, Saint Luke’s agreed to pay about $2 million in annual bond payments that were used to build the hospital, removing that from property taxes.
But the county still owns the hospital and the Medical Arts Building and is responsible for their upkeep. In 2020, Saint Luke’s estimated it would take a minimum $450,000 per year to maintain the hospital and pay for needed improvements.
The hospital facilities board oversees improvements and is responsible for allocating funds. Currently, Commissioner John Brocker serves as chair, a position recently held by Loren Korte, who died last month. Other members are Terry Sparks, Jim Gilpin, Nathan Fawson and Kim Ensminger. There are two empty seats. County commissioners select board members.
In 2022, funds from the sales tax were used to convert the hospital’s former labor and delivery unit into a specialty clinic, a project that cost around $1.1 million. That same year, an extensive remodel to the Medical Arts building was completed, creating 10 exam rooms, five provider offices, a lab and waiting room. That project was budgeted at around $500,000.
In 2024, three dehumidifiers in the hospital’s surgery unit were replaced; other dehumidifiers throughout the hospital are being swapped out. The parking lot at the Medical Arts Building has also been improved, and additional equipment in the hospital has been upgraded. The hospital fund currently stands at around $2.4 million.
Brocker noted that major expenses may be on the horizon. “At our last meeting, Pat Patton let us know that at some point, something will need to be done with the hospital’s roof,” Brocker told the Register. Patton is Saint Luke’s administrator for both Allen County and Anderson County hospitals.
“We’re not sure what that means just yet. It’s not an old roof; it was built in 2013. But those types of repairs are expensive, and anyone who works on the hospital must be approved by Saint Luke’s team,” Brocker said.
A quarter-cent sales tax is projected to raise around $743,000 per year. Since 2010, Allen County voters have approved the sales tax question each time. If voters say yes this Nov. 4, the quarter-cent sales tax will take effect on Jan. 1, 2026 and last until the end of 2031.
Regardless of the sales tax’s outcome, the county will be responsible for the upkeep of its buildings as part of its agreement with Saint Luke’s. The question is where the money comes from. If the sales tax issue fails, Brocker noted, the county may be obligated to increase property taxes to cover the cost.
