'It's not just a hospital'

COEUR d’ALENE — Several Kootenai Health trustees reiterated their support Thursday for the hospital district to transition from being government-owned to a nonprofit, while one trustee said he opposed it.

“We are here for one purpose and that’s to maintain health services for Kootenai Health at the highest standard available,” said Trustee Katie Brodie.

About 75 people attended the informational meeting at the Best Western Plus Coeur d’Alene Inn. Trustees did not take questions from the audience, but answered written questions submitted prior to the meeting.

While two police officers were present, it was a quiet meeting without interruptions.

Kootenai Health CEO Jon Ness and others presented a white paper, released last week, that outlined the benefits, drawbacks and considerations for transition to a 501(c)3.

If the transition is approved by trustees, who are expected to vote on it next week, it could take about six months to complete.

Trustees said there are no plans to sell Kootenai Health if the transition is completed.

Kootenai Health has been a hospital district since 1956. Ness said that in 2010 it was “a really good, independent hospital.” Today, it has an annual payroll of about $350 million.

“It’s not just a hospital,” Ness said. “It’s a regional medical center.”

The area’s dramatic growth has created financial, medical and labor challenges, which have forced Kootenai Health to consider changing its status.

Brodie said the transition is not being rushed.

“This board has thoroughly examined with our consultants, with our legal team, every possible nuisance that could come before us," she said "I feel really confident that we have not rushed to judgment in any way, shape or form. We tried to be as transparent and open with the community as we can possibly be going forward.”

Trustee Teri Farr said Kootenai Health is still recovering from dealing with COVID-19, and the country could be headed into a recession.

She said hospitals are closing across the country.

“That really concerns me because I think the hospital is probably the most important institution in the community," Farr said.

She said the hospital district must prepare for the future and this transition to nonprofit status is a key step.

“Financial challenges are going to get greater," she said.

Ness said the change would not impact the cost of health care.

“That is a firm and solid commitment from the board and leadership,” he said.

Trustee Robert Colvin said Kootenai Health is the premier medical care facility in North Idaho, but needs the flexibility of a nonprofit to stay there.

He said he just paid $550 to North Idaho College as part of his property taxes, and if that were prorated for the hospital, “it would be a much larger number than that. We don't want to have that happen.”

Kootenai Health has not exercised its taxing authority since 1995, but has received about $30 million from the Kootenai Health Foundation.

Colvin said going to a nonprofit would be a model that "fits the fabric of a conservative community."

Trustee Bob McFarland said he initially had many questions about the transition, but said those questions have been answered.

Trustee Dave Bobbitt said there were more positives than negatives to the change.

“I’m coming to the opinion that it’s good for Kootenai County and the people here," he said.

Trustee Steve Matheson said he opposed the nonprofit conversion.

“I think the motivation behind it is more political than meets the eye," he said.

Matheson said Kootenai Health is a billion-dollar operation that has been grown by the community for the last 65 years.

“Now, we’re going to transition that institution to a public entity where the community has no input on how it’s going to run,” he said.

Matheson said the proposal should go to the public for a vote, rather than the board deciding the issue.

Ness said as CEO, the community’s rising population — expected to eventually double from 175,000 — is on his mind.

“If we don’t have the right governance structure, if we don’t have the right legal structure, it’s going to hinder our growth, which is going to limit service for patients who live here," he said.

He said the move is not political.

“I think it’s 100% about creating an outstanding regional medical center to serve double the number of patients,” Ness said.

The 90-minute session was presented by the Joint Chamber Public Policy Committee, representing the Coeur d’Alene, Post Falls, Hayden and Rathdrum chambers of commerce.