Voters repeal tax for hospital

Election ordered after Crittenden Regional’s closure

WEST MEMPHIS -- Crittenden County voters in a special election Tuesday repealed a 1 percent sales tax they overwhelmingly approved in June to save the financially troubled Crittenden Regional Hospital.

The tax would have raised about $6 million a year for five years beginning Oct. 1 to help save the hospital, which administrators said was facing $30 million in debt. However, a circuit judge ordered an injunction on the tax after the hospital closed in September and filed for bankruptcy, and county officials ordered a special election to repeal the tax.

Complete but unofficial results are:

For 1,193

Against 141

"I think people were disgruntled about supporting something with the tax and then having it close," Crittenden County Election Commissioner Pat Henderson said. "They didn't see the process work after they were told the tax would save the hospital."

Crittenden Regional Hospital closed briefly after a June 6 fire razed an unoccupied intensive-care room on the second floor and water from the hospital's sprinkler system damaged floors, ceilings and walls.

Voters favored the tax during a special election June 24, in a 3,952-661 vote. Some county officials thought the closure after the fire spurred people to the polls because it gave them an idea of what it would be like without a county hospital.

"The people have given us a clear indication that we've got work to do," said Gene Cashman, the hospital's chief executive officer, the day after the election. "They understand the value and need for an acute hospital."

After workers repaired the fire and water damage, the hospital reopened July 18. On Aug. 25, however, Cashman sent letters to employees saying the hospital would close Sept. 7 because it could no longer afford to remain open, despite the 1 percent sales tax's passage. In the letter, Cashman wrote that revenue from the sales tax would not be enough to maintain operations.

The hospital filed for bankruptcy, and administrators are accused in civil lawsuits of withholding money from employees' paychecks for insurance but failing to pay premiums for 2014. The hospital employed about 400 workers.

Woody Wheeless, county judge of Crittenden County, was not available for comment Tuesday. He has said he recently met with potential hospital buyers, but he did not say who they were.

State Desk on 12/10/2014

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