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Published: Thursday, July 24, 2008

Stevens Hospital considers tax levy

The funding could be part of a larger project to build a second emergency room off-site.

EDMONDS -- Voters in south Snohomish County could be asked to approve a tax increase in May to help pay for improvements at Stevens Hospital, what backers say could be key to the hospital's future.

The hospital's five-member board on Wednesday took the first step to put a measure on the ballot. It asked chief executive Mike Carter to report back within 60 days with information on possible ballot measures, such as a request for a levy to pay off a bond or an increase in its maintenance and operations tax.

"We feel like there's a bunch of information we need to have in a fairly short period of time" for any tax increase proposal to be put on a special election ballot in May, said Deana Knutsen, board president.

It's too early to know how much money might be requested or what specific projects might be on the list of proposed improvements, she said.

A tax increase might be part of a larger money-raising plan to pay for hospital improvements or programs that also may include other area health-care businesses as partners, she said.

Some of the hospital's cardiac and oncology programs are currently run in partnership with Swedish Medical Center in Seattle.

The board also asked Carter for suggestions on projects or programs with which the hospital might collaborate with another organization.

A second emergency room might be one such project, Knutsen said. The hospital's current emergency room, which was built to treat 25,000 to 30,000 patients a year, is now treating about 40,000 annually.

The hospital has been considering building a second emergency room off-site for several years. The project is estimated to cost about $40 million.

Some members of the public, as well as employees and representatives of the Services Employees International Union 1199 NW who were in the audience at Wednesday's meeting, said they would be willing to volunteer to try to sell a tax increase to the public.

Lester Blume, 87, said he has lived in Edmonds since 1940 and watched the hospital grow.

"We need to get behind this hospital every inch of the way," he said. "If we need to raise taxes, we'll have to ask for it."

South Snohomish County property owners now pay about $3.8 million a year to support the hospital. Kirkland-area property owners pay $23 million in taxes annually to Evergreen Hospital, and Valley Medical Center collects $18 million a year in taxes.

Earlier this year, the Edmonds hospital hired a consulting firm to take a comprehensive look at the hospital and its future. Its second report, issued Monday, concluded that the hospital is millions of dollars behind in improvements.

It outlined a number of steps the hospital board could consider on the organization's future. These included building a second, off-site emergency room, building a new hospital, collaborating with other organizations or having another organization take over the hospital.

Board members could not agree Wednesday on just how many of these options will be seriously considered.

Knutsen said she wanted the hospital to remain a public hospital, governed by a publicly elected board.

Long-time board member Fred Langer said he wanted the board to remain open to all options. "The key is to get capital," he said. "I'm not closing off anything."

Rather than debate the issue further, Knutsen asked board members to put specific proposals for the hospital's future in writing. After being reviewed by the hospital's attorney, they can be put on the agenda for the board's August meeting, she said.



Reporter Sharon Salyer: 425-339-3486 or salyer@heraldnet.com.

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Swedish/Edmonds
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