We improve healthcare in our community and address unmet needs through services, education, and collaboration.
We Are Committed To:
Collaborating to fill gaps from birth through elder care,
Supporting area health organizations, and
Furthering community wellness through education and outreach
Kennewick Public Hospital District is a District without a hospital, yet we continue to provide for our community through contracting with Trios Health.
The District formed in 1948 alongside the opening of Kennewick General Hospital, now Trios Health. For the next 70 years we provided healthcare to the Kennewick community, kept the hospitals running, and built Southridge hospital in 2014 to address the needs of our district’s growing population.
However, Trios Healthcare had to file for bankruptcy in 2017. The cost of construction for Southridge hospital outweighed the income generated from Southridge. In order to prevent the hospital from being shut down and costing over 1,000 community members their jobs, the hospital’s ownership was sold to RCCH Trios Health, LLC now under LifePoint.
A group of people talking in the hospital
Selling the hospital caused a significant shift in delivering our services, but we continue to provide adequate and high-quality healthcare for the Kennewick community, with or without a hospital. We now offer healthcare by contracting these services from RCCH Health Care Partners and Trios.
The District remains a valuable organization for funding and addressing unmet healthcare gaps within our community.
People at work smiling
Expand each section to reveal answer.
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 / LifePoint 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/LifePoint. The hospital District has no involvement with the lease other than its tax payment obligation.
Section 3 of the agreement requires RCCH/LifePoint 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 itself from Trios hospital and use it for future projects, such as the Recovery Center. The district's anticipated business plan is to own the Recovery Center building and contract with service providers for operation. The Benton Franklin Health District is not anticipated to be a tenant—but we would surely welcome them if they would like to.
The Community Care Agreement defines the role of the District going forward.
The Agreement adopts a charitable care policy which meets the needs of vulnerable members in our community, including the promise that healthcare services are available to all residents of the District.