Hospitals asks for $24,500 match
RUSSELLVILLE — Red Bay Hospital has asked the Franklin County Commission to help cover a required 10% local contribution under the state’s Rural Hospital Investment Program.
Sherry Jolley, vice president and administrator of Red Bay Hospital, made the request.
The program allows individuals and businesses to contribute to qualifying rural hospitals in exchange for a dollar-fordollar credit against their Alabama state income tax liability.
Both Red Bay Hospital and Russellville Hospital, the only two hospitals in the county, appear on the Alabama Department of Revenue’s list of eligible facilities.
The state assigns participating hospitals to tiers based on financial criteria. Red Bay Hospital is classified as Tier 1 under the program, while Russellville Hospital is classified as Tier 2.
The structure requires a local contribution equal to 10% of the total amount pledged.
Jolley told commissioners Red Bay Hospital had raised about $245,000 in pledges. A 10% local match would be $24,500.
“That’ll be the total. We won’t be eligible to get any more,” Jolley said of this year’s contributions.
She said some individuals and businesses pledged funds but were unable to complete the required online submission before the statewide $20 million cap was reached.
Jolley told commissioners the city of Red Bay has agreed to participate in the program and is willing to cover the required 10% local match.
Red Bay City Clerk Hannah Baggett confirmed the city council approved participation in the program at its Dec. 17 meeting. She said the city will pay 10% or up to $75,000 from the Industrial Development Fund if proof of funds raised is provided.
Jolley asked the commission to consider helping cover part of the local contribution, so the full amount would not fall solely on the city of Red Bay.
Probate Judge Barry Moore said on Feb. 17 that any decision the commission would make would hinge on consideration of both Red Bay Hospital and Russellville Hospital. He addition the commission’s decision would also depend on what, if anything, the city of Russellville does.
Russellville City Clerk Belinda Miller said Russellville Hospital CEO Chris Ware presented information about the program and the required 10% local match at the Dec. 1 city council meeting.
Miller said no action was taken at that meeting, and the city has not committed any funds related to the program.
