Mission and Vision

 Yes. The CCA was to demonstrate there was a continuing need for the hospital and that a reasonable plan could be achieved. Under that plan the District transferred all its developed property (Southridge, Auburn, etc.) to RCCH. In turn RCCH assumed approximately $200 million of the debt. The undeveloped property was transferred to the Creditor’s Trust for liquidation for the benefit of unsecured creditors. 

 The lease referred to the Southridge Campus, where RCCH is the lessee. That lease began Aug. 3, 2018, and the initial term runs for 13 years. It is subject to renewal terms at the option of  RCCH. The hospital District has no involvement with the lease other than its tax payment obligation. 

Section 3 of the agreement requires RCCH to “operate the Facilities and provide services “(a) provide charity care consistent with applicable state law” and (b) maintain participation in the Medicare program.” The Community Service Payment was compensation for these services. The Payment is essentially equal to 80% of the KPHD’s property tax income. This obligation continues as long as the lease continues. This last year the Community Service Payment totaled approximately $1.095M. 

The Community Service Payment from tax revenues continue for the duration of the lease and its  renewals. There is Cost of Living adjustment programed in at the end of the first thirteen-year term. This is the same payment addressed in the answer to your third question. 

The Recovery Center will have to be funded from grants and state/federal/county assistance and generate its own operating revenue, not additional property taxes. The part about the 1% supporting the Recovery Center is not quite  right. This is the annual property tax rate increase allowed to meet inflation. That works out to be a $14.5K increase in a $1.5M budget. That goes to the overall budget for operations. The Community Care Agreement requires KPHD to pay RCCH “current year property taxes”, which include any statutorily authorized increases. The current budget has only $12K earmarked for pursuing the Recovery Center.  

The Kennewick Public Hospital District has secured the trade-name “Two Rivers Health District” to distinguish it from the hospital and use for future projects, such as the Recovery Center. The anticipated business  plan of the district is to own the Recovery Center building but to contract with service providers for operation. The Benton Franklin Health District is not anticipated to be a tenant—but we would sure welcome them if they would like to.