The voters of Fayette County have spoken, and they’ve said that they don’t need a hospital in this rural community of 322,000 people, one hour southeast of Austin — or at least not enough to pay for it. In a landslide vote Thursday night, county residents overwhelmingly rejected a proposition to create a taxing district for St. Mark’s Medical Center in La Grange, which would have kept the deeply indebted hospital open for the foreseeable future. As the polls closed, it was clear that the idea of propping up the institution with public money didn’t have a snowball’s chance in Central Texas. The final tally was 1,360 for, 5,600 against.
“I’m very proud of the grassroots effort that stood against the taxes,” Deborah Frank, the chair of Fayette County’s Republican Party and a member of Concerned Taxpayers of Fayette County PAC, told the Observer Friday. Her group swiftly mobilized an opposition campaign against the proposition after it was put on the ballot in April, holding public meetings and distributing yard signs reading “NO NEW TAXES.” Their message: People here are already taxed enough and shouldn’t be forced to bail out a private institution simply because it’s made what they see as bad financial decisions.
Voters apparently took the message to heart.
The resounding loss is expected to push the 65-bed hospital, which is at least $14 million in debt, even closer to financial collapse. And it comes at a time when the headwinds against rural hospitals in Texas are especially strong.
Across the state, roughly 20 rural hospitals have shuttered since 2013 — casualties of low patient volumes, stingy Medicaid and Medicare reimbursement rates, and the burden of operating in Texas, which has more uninsured people than any other state. Seventy-five more are at risk of closing down.
One point to note: I have no idea where that “rural community of 322,000 people” figure comes from. Fayette County had 24,554 people as of the 2010 Census, and while it’s been growing over the past few decades, I’m pretty sure it hasn’t grown that much since then. I don’t live in La Grange and I don’t know anything about St. Mark’s Medical Center, so maybe it was a fiscally sound decision to not try to prop it up with a taxing district. I do know that if I lived in La Grange and faced the prospect having to travel 20 miles to Smithville or 26 miles the other direction to Columbus to find an emergency room, I’d be a little concerned about the risks to my health going forward. But hey, at least their taxes won’t go up.