The hospital is pursuing a $6 million upgrade to its emergency room and medical/surgery department and struggled with the legal limitations that Idaho public entities encounter in building up long-term debt. The switch to nonprofit status will allow the hospital to maintain more internal control of costly project funding in cooperation with a 2006 Idaho Supreme Court ruling on “ordinary and necessary” expenses, according to the report.
There are three steps left in the transition. The IRS must approve the hospital’s 501(c)3 non-profit application, after which the hospital will amend its contracts and licenses to conform to the new structure. Finally, the county must lease the hospital building and move the hospital’s assets over to the non-profit.
The hospital stands to lose about half of the $290,000 it receives yearly from the county, but that amount only represents about one percent of hospital expenses. Hospital administrators are confident that the corporation will be able to recoup the loss, according to the report.
Minidoka Memorial officials have tentatively set the transition date for Sept. 30.
Read the News-Times report on Minidoka Memorial Hospital.
