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Minutes for HB2390 - Committee on Taxation
Short Title
Providing countywide retailers' sales tax authority for Jackson county for the purpose of supporting hospital services in the county.
Minutes Content for Mon, Mar 10, 2025
Chairperson Smith opened the hearing for HB2390.
Adam Siebers provided an overview for HB2390 that provides a countywide retailer's sales tax authority for Jackson County. (Attachment 7)
Proponents:
Carrie Lutz, CEO Holton Community Hospital, testified as a proponent for HB2390 to request support for the citizens of Jackson County to vote on a sales tax at 0.25 percent that would support the community hospital. She noted Kansas hospitals are struggling financially and it is difficult to ask for assistance from the community for an increase in taxation that is an unpopular decision and sensitive. A growing number of patients are enrolled in Medicare Advantage plans and unfortunately the reimbursement rates are less favorable than traditional Medicare. Medicare Advantage enrollment in rural areas has increase by 43.0 percent and impacts the financial stability of rural hospitals like the Holton Community Hospital. Ms. Lutz stated they are committed to provide quality care to the community which is their mission and responsibility. Access to timely and appropriate care is not only vital for the health of the Jackson county residents but also for the overall economic health of the community. (Attachment 8) Ms. Lutz stood for questions from Committee members.
Mark Aeschliman, member of Holton Community Hospital Board testified as a proponent for HB2390 which requests a 0.25 percent sales tax to support the Holton Community Hospital. The Holton Community Hospital receives no financial support in terms of taxes or mill levies. In the past few years, major reimbursement challenges have occurred regarding how the hospital is paid for procedures performed resulting in a very challenging environment. Operating expenses have risen 33.0 percent from increased salaries to compete against large hospitals for employees, supply chain issues, and delays in reimbursement from payors. (Attachment 9) Mr. Aeschliman stood for questions from Committee members.
Written proponent testimony for HB2390 was submitted by the following:
Marilyn Watkins, Holton Community Hospital Board Member and Holton City Commissioner, (Attachment 10)
Jay Hall, Kansas Association of Counties, (Attachment 11)
Medical Providers, Holton Community Hospital, (Attachment 12)
Chairperson Smith closed the hearing for HB2390.
