Dosher Hospital Tax Frequently Asked Questions
Q. What is the Dosher Hospital Tax?
A. The Dosher tax is a .04 cents per $100 tax levy on Smithville Township property evaluation. This tax was approved by the Smithville Township electorate on May 2, 2000. The tax began January 1, 2001 and was approved to be collected for 30 years thereafter. Proceeds of the tax have been used to retire $13 million of limited obligation bonds approved in May 2000 and per state law, for capital improvements and maintenance to the hospital.Q. How does the tax and the upcoming renewal of the tax make a difference?
A. The tax revenue can only be used on capital expenses and maintenance. It cannot be used on operating expenses such as payroll.Q. How does the hospital impact the health of the community?
A. Dosher is an important resource for our entire community. Safe, quality local healthcare is a significant factor for quality of life. Dosher sponsors a number of important community programs, such as health fairs, where we perform vital screenings for local residents and provide education on a number of topics, such as chronic disease prevention and management. We are also a major economic engine for this area, providing over 400 direct jobs for workers with diverse talent and experience and countless indirect jobs that are funded by our dollars that are spent within the community.Q. How do I know the tax revenue will be efficiently managed?
There are a number of oversight and accountability measures in place through our Board of Trustees, Auditors, and Dosher’s Chief Financial Officer to ensure proper stewardship of the tax money and that the funds are being allocated appropriately.Q. Why should the hospital tax renewal be prioritized?
A. In the Dosher Memorial Hospital Community Health Improvement Plan for 2023-2025, access to care was the number one priority, which came directly from the Community Health Needs Assessment surveys done last year. Smithville Township’s continued investment in Dosher helps ensure the availability of primary care providers, surgical services, physical therapy, inpatient beds, wound care, diagnostic imaging, and life-saving emergency care for local residents.Q. Why does the hospital rely on the tax?
A. The Hospital is able to fund the operating costs of the Hospital. Dosher Memorial Hospital is a CMS (Centers for Medicare Services) designated CAH (critical access hospital). One of the benefits of this CAH designation is how Dosher is reimbursed from Medicare and Medicaid. 68% of our patients have Medicare or Medicaid, and the Hospital is reimbursed on allowable costs.Q. What does allowable cost mean?
A. It is the cost to provide the direct service to the patient only. Therefore, there is no extra payment for the hospital to invest in capital purchases, critical repairs, and expansions in infrastructure. An example of this is the construction and renovation associated with Phase 1 of Dosher’s 7-year Master Facility Plan. Hospital and clinic renovation as well as the construction of a brand new 8,000 square foot Emergency Department is possible due to the Smithville Township hospital tax.Q. What does the money from the hospital tax go toward?
A. Capital Equipment purchases and Repairs & Maintenance (R&M) of hospital buildings.2020 – Capital purchases $1.6 M, R&M $1.9 M
2021 – Capital purchases $3.4 M, R&M $1.8 M
2022 – Capital purchases $2.2 M, R&M $1.6 M
2023 – Capital purchases $2.1 M, R&M $2.0 M
2024 – Capital purchases $7.4 M, R&M $2.7 M
2025 – Capital purchases $15.9 M, R&M $2.4 M (APPROVED BUDGET)
Q. What has the average yearly credited tax been over the past four years?
A. Approximately $2.9 M annuallyQ. What to expect with today's recent assessments? (for all of Smithville Township?)
A. The 2025 budget includes the recent assessments.The Bond was paid in full in June 2024. Our new fiscal year began in Oct 2024 and is the first full year in which the tax revenue is not offset by the bond payments.
Download Hospital Tax FAQ’s here.
Based on 2025 Data