Reviving and Improving a Rural Hospital

Poster

Marion County, in rural northwest Alabama, is fortunate to have two viable hospitals in a county of approximately 30,000 population.

However, in 1993, this was not the case. The hospital in Hamilton, the county seat, had been used as a political tool since its establishment in the early 1950's. It had been leased and sub-leased to for-profit companies, some of which had taken any profits and never invested in facilities or equipment upgrades.

In 1993, the City of Hamilton rescinded the management contract, and secured a $3 million bond to fix the deficiencies to keep the hospital open. At the same time, the City appointed a five member Marion County Health Care Authority, whose sole purpose was to keep the hospital open and make the necessary upgrades to the facilities and equipment. The local County Extension Coordinator was appointed to that Authority.

The Authority secured a management agreement with Baptist Health Systems of Birmingham for one year. That was extended for 18 months, to see if the venture would be economically feasible. Then the contract was extended for the remainder of the 99-year lease. Many improvements were made, but Baptist was not reaping any economic benefits, because referrals were going to a closer facility.

In October of 2000, the Authority sold the facility to a closer system, with a contract to build a $7.5 million facility in Hamilton within 5 years. Patients were moved into the new facility in September, 2005.