With the crisp clear air of a March Monday morning, the good folks of Russell Medical Center of Alexander City presented the challenge of rural medicine to the Tallapoosa County Commission.
To put it simply, Russell Medical Center is losing money, and they are not alone. Of the hospitals in Alabama, 71% are losing money each year. Of rural hospitals, the numbers increase to 83% posting deficits at the end of each fiscal year.
Russell Medical Center, a not-for-profit care facility, had to swallow a whopping $4.5 million in uncompensated care in 2024. That number continues to grow annually. Medicare and other governmental-instituted health insurances, which are reimbursing less than the actual cost of the healthcare, are the culprits.
The impact of the Affordable Care Act, colloquially known as Obamacare, wrought chaos in the finances of traditional healthcare systems. Healthcare costs will continue to climb because governmental meddling will always reduce efficiencies and drive up costs.
What can be done?
Russell Medical Center proposed a solution to the gathered Tallapoosa Commissioners: more governmental meddling.
Because Russell Medical has over 600 direct and indirect employees and has over an $100 million positive impact on the county, they want the county to help cover their uncompensated care to the tune of $1 million a year.
One million dollars is a big ask for any budget. But the people of Russell Medical concluded that some of the new funding from the recently imposed lodging tax on the unincorporated areas of Tallapoosa County (think Lake Martin rentals) would best be served to offset the financial shortfalls.
Some have argued that this new lodging tax, sponsored by State Rep. Ed Oliver (R-Dadeville) and signed into law by Gov. Kay Ivey in 2023, is good because the residents of Tallapoosa County are not paying it – only visitors are, right? But any taxation is theft. It is forcible redistribution of wealth.
That is what socialist Democrats do. But in this case, it was a Republican representative who sponsored the bill, it was a Republican governor who signed it into law, and it is Republican-dominated County Commission who is happily using it.
I thought Republicans wanted less taxes? Maybe I am mistaken.
Despite the good intentions of Russell Medical, subsidizing healthcare is socialism. The solution for governmental meddling (federally subsidized Obamacare) is not more governmental meddling (Tallapoosa County subsidizing Russell Medical).
But how do we fix the problems and still keep rural access to medicine?
Frankly, nationwide problems caused by the federal government must be solved at the same level. With this new administration, I pray that they find a solution to the mess of healthcare.
In the meantime, others have proposed solutions. State Rep. Terri Collins (R-Decatur) has reintroduced House Bill 86 (HB86) to establish the Rural Hospital Investment Program. This bill would provide dollar-to-dollar tax credits for individuals and corporations that make donations to rural hospitals. The bill is currently in committee (Ways and Means Education Committee of all places) where it may sit the rest of this legislative session.
Instead of trying to coerce the strong-armed funds of citizens via Tallapoosa County government, Russell Medical would make a better case to lobby for HB86. Then, via the tax deductible donations of citizens and business, Russell Medical could obtain the funds they need without the inefficient middleman of socialist government.
Dr. James Kring is a homeschool father, homesteader, farmer, and resident of Tallapoosa County.
The views and opinions expressed here are those of the author and do not necessarily reflect the policy or position of 1819 News. To comment, please send an email with your name and contact information to [email protected].
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