If Florida's HB 739 is inked, much could change for the Titusville-based North Brevard County Hospital District.
The bill — which unanimously passed through its second House committee on Feb. 2, according to Florida's Voice — would replace the hospital district's current nine-member board with a five-member one, appointed by Gov. Ron DeSantis.
It would also require a "valuation" of the district's assets and mandate a sale or lease if it is found to be in the hospital's best interest. Any proceeds from the sale would be directed to the Brevard County Board of County Commissioners, as would any remaining assets and liabilities.
Finally, the bill would remove the district's ability to levy an ad valorem tax.
At a Feb. 2 House Select Committee meeting, Rep. Randy Fine presented his bill as a response to the hospital district's financial challenges. The district has lost money eight of the past 10 years, only yielding a profit when it received COVID-19 relief funds, according to Mr. Fine. He said that despite population growth, hospital admissions have dropped 10% per year over the last decade — and although the hospital is a safety net, it has allegedly refused to contract with multiple Medicaid managed care companies.
Mr. Fine said the hospital district owes "$80 million in the name of taxpayers in our county, in addition to having $237 million in liabilities," and is ranked in the bottom 5% in the country by CMS.
However, George Mikitarian, president and CEO of the district's 210-bed Parrish Medical Center in Titusville, argued that the hospital reinvests every penny of profit into the community, and that the majority of U.S. hospitals are also in debt.
When asked if the hospital's woes might be attributable to administrative issues, Mr. Mikitarian defended against mismanagement.
Mr. Fine said he believes the hospital will "go out of business eventually" and called the bill an attempt to save it.
"It makes sense to do this test — to see if someone can come in and save this place," he said. "I don't know that they can, it may be doomed, but we owe it a shot."
Becker's has reached out to the hospital district for comment and will update this story if more information becomes available.