The story of the MidCoast Health System here in Llano continues to evolve. Current timeline of events:
- Nov. 4 Llano City Council approves budget and payment of $400,000 from LEDC reserves to fund the hospital.
- Nov. 6 Mayor Bishop explains the $400,000 is an “investment” in the hospital system to bring 12-14 new jobs to Llano in early 2025.
- Nov 26 Llano County Commissions meet to allocate $450,000 to help pay potential staffing losses and for legal representation for ongoing negotiations with Mid Coast Health System.
- Dec 13 Mid Coast Health system issues a press release that they have furloughed 12 people (25% of the Llano jobs) at a savings of $30,000 per payroll cycle (upwards of $780,000 annually).
We spoke with Mayor Bishop again on Dec 19th to follow up on the latest news from Mid Coast Health and the effects on the City’s allocation of $400,000 that was intended to bring 12 to 14 jobs to the area. Bishop told us the situation has changed and is no longer necessarily an investment but providing support for the hospital. Bishop was uncertain how long the city’s $400,000 funding could support the hospital nor if the $400,000 had been released to the hospital. He explained that City Council approved funding of the $400,000 by tapping into the reserves of the Llano Economic Development Corporation (LEDC) and referred us to the LEDC which controls those funds.
When asked what assurances the City has received that this money will stay in the community; he said that although no assurances were received, he feels comfortable that this money will stay in the community. Although the hospital is located in Llano, Mid Coast Health System is headquartered in El Campo, Tx.
We contacted 2 of the officers of the LEDC; Pat McDowell, VP of the LEDC Board and Allen Hopson President of the LEDC Board. McDowell responded that the money has not been moved out of the City’s account but would not provide specifics of how and when this money will be distributed given the recent hospital furloughs saying he would comment at the appropriate time.
In his December 13th press release CEO Brett Kirkham of Mid Coast Health System ended with a cold hard truth: “Mid Coast Health System has been transparent with Llano County officials regarding the need for additional financial support through local tax dollars and/ or philanthropy to maintain current operations,” Kirkham said, noting the area [Llano] is one of a few in Texas that does not utilize a hospital district as a local taxing authority to fund hospital operations and local health and wellness investment. “Profitability without local support will continue to limit the development of a strong local healthcare system as Llano County grows.”
As this story continues to evolve, there are several players in this story that need to be followed. The County, who is preparing for a legal battle as well as providing rescue funding. The City of Llano and their desire to fund the hospital out of City reserves. Mid Coast Health who has already reduced hospital staff by terminating 25% of the staff and whose CEO has said the only way to survive is through additional taxes in the form of property taxes; and finally, the citizens of the City and County and their desire to maintain a hospital weighed against increased taxes on the residents.
