Troy Messenger: Rural hospital bill could provide needed funding
By Huck Treadwell
Friday, April 25, 2025
A proposed plan by Rep. Terri Collins, R-Decatur, would give citizens and industries a tax credit for donating money to rural hospitals.
Collins’ Bill, HB86, was passed by the Alabama House on April 8 by a 103-0 margin. HB86 was sent to the Alabama Senate and referred to the Senate Committee on Finance and Taxation Education on April 9.
The bill would provide an additional avenue of funding for rural hospitals in Alabama. Since 2011, at least seven rural hospitals have closed because of lack of funding. In addition, Alabama has 52 rural hospitals that meet federal criteria and more than half of those hospitals are at risk of closing.
“HB86 is modeled after a similar program in Georgia,” Troy Regional Medical Center CEO Rick Smith said. “It’s been wildly successful and has raised millions of dollars for rural hospitals. I’m on the Alabama Hospital Association Board and this is something we talk about at every meeting. Over half of our 52 hospitals are at risk of closing and 19 more are facing the possibility of immediate closure.”
Collins’ bill would put an annual cap on donations for individuals at $30,000, industries at $450,000 and for businesses with multiple owners, a $500,000 cap is in place. If the bill passes, the total amount of donations that would go back to hospitals is $20 million in 2026, $25 million in 2027 and $30 million in 2027 and each successive year thereafter.
“I think the bill could be very successful in Alabama,” Smith said. “It has a $20 million cap the first year. That’s not a lot of money when you spread it out over 52 hospitals. But, if it grows like I think it will, it will provide a lot of money for rural hospitals. Georgia’s program has been in place for several years and it generates hundreds of millions.
“If you’re a taxpayer in Troy, would you rather have your tax money go to Troy Regional or to the state? I know what my answer would be. I would also hope that some of our industries would rather donate their tax money to their community hospital instead of the state.”
Smith said rural hospitals struggle with tough decisions between maintenance decisions and clinical decisions every day. He said additional funding through the Rural Hospital Investment Program would give rural hospitals some much needed assistance in continuing operations.
“Our building will be 56 years old in June,” Smith said. “We have a lot of decisions we have to make about facility maintenance and our clinical needs. We would love to do everything we need to do. But we just don’t have the money. The extra funding through the Rural Hospital Investment Program would help us do a lot of things to keep our facilities going.”
By law, Alabama’s Legislature is limited to 30 meeting days during a 105-day session period. This year’s session ends on May 15 and there are only four meeting days left in the session.
Sen. Arthur Orr, R-Decatur, is the chairperson of the Senate Committee on Finance and Taxation Education. The legislation must pass the finance and taxation education committee before it can be brought to the senate floor. Letters in support of the Rural Hospital Investment Act can be mailed to his office at 2128 6th Ave SE, Suite 504, Decatur, AL 35601 or emailed to arthur.orr@alsenate.gov.