Southwest Georgia hospitals expect to benefit from tax credit program

ALBANY — Health care officials in Southwest Georgia are currently in the evaluation phase in determining exactly how they will benefit from a state Senate bill passed earlier this year allowing individuals and corporations to receive tax credits for financial contributions made to eligible rural hospitals — even if they are not in the community the hospital serves.

For those hospitals that have been deemed eligible, it is an exciting development in the ongoing effort to fill the gap for regions in which health care institutions have been traditionally underserved.

In March, the General Assembly passed SB 258, which the Georgia Hospital Association fully supported and was instrumental in the design and passage of. It allows $50 million in tax credits in 2017, the program’s first year, and opens the door for many rural hospitals in the state to receive up to $4 million in contributions annually.

On April 26, Gov. Nathan Deal signed the bill into law. It will take effect Jan. 1.

Cook Medical Center in Adel, part of Tift Regional Health System, is among those facilities deemed eligible to take part in the tax credit program.

“The Georgia Rural Hospital Tax Credit bill, SB 258, is an important program aimed to help extend a lifeline to so many rural Georgia hospitals,” said Cook Medical Center CEO Michael Purvis. “These vital contributions by Georgia taxpayers and corporations will ensure the continued delivery of high-quality care for the patients and the communities we serve.”

Phoebe Putney Health System officials expect to have three of its campuses benefit: Phoebe Worth Medical Center in Sylvester, Phoebe Sumter Medical Center in Americus and Southwest Georgia Regional Medical Center in Cuthbert.

“This platform gives every Georgian the option to redirect (financial contributions),” said Phoebe Foundation Executive Director Lauren Ray. “(The struggle of Phoebe’s rural hospitals) is no different than any other rural hospital. There are not as many resources available (as there are for hospitals) in metro counties.

“Anything we have to bolster (resources) for rural hospitals is important.”

In order for individual and corporate taxpayers to take full advantage of the program, Atlanta-based Portage Charity Advisers recently created “Georgia HEART” (Helping Ensure Access to Rural Treatment). Officials with GHA said it was established as a turnkey solution to help qualifying hospitals — many of which do not have the staff to handle the administrative responsibilities of the program — with marketing, tracking, processing and reporting requirements.

GHA officials said that, through its subsidiary Georgia Hospital Health Services, it is working with Portage to help hospitals take advantage of the new funds.

“We are pleased to be involved in efforts to ensure Georgia’s rural hospitals benefit from these additional dollars,” said GHA President and CEO Earl Rogers. “Portage has a demonstrated track record of success with its great work with the Georgia GOAL Scholarship Program and is an excellent choice for helping Georgia’s rural hospitals with this tax credit program.”

Since 2013, five hospitals in Georgia — including two in Southwest Georgia — have closed, and many more have been faced with major financial challenges. In 2014, 66 percent of every rural hospital in Georgia had negative total operating margins, GHA said.

The bill, authored by Rep. Geoff Duncan, R-Cumming, allows single taxpayers a 70 percent tax credit on donations of up to $2,500 per year, married couples a 70 percent credit on contributions up to $5,000 per year, and corporations a 70 percent tax credit on contributions or up to 75 percent of their Georgia income tax liability, whichever is less.

In addition, contributors may also be eligible to take advantage of federal tax deductions. It is a three-year program which will be evaluated in 2019 to determine its viability.

“It is a huge opportunity for rural hospitals,” Ray said.

Among other things, Georgia HEART is providing rural hospitals assistance in preparing a mandatory five-year plan due to be completed in early October. The plan will be passed on to officials at the state level, after which clearance will be issued to hospitals so they can begin the program and establish a firm plan for how the funds will be used.

The Georgia Department of Community Health, which will administer the program at the state level in conjunction with the Georgia Department of Revenue, compiled a list of hospitals in the state eligible to participate in the program.

For more information on the law and the eligible hospitals, visit georgiaheart.org.