The Lakes Regional Healthcare (LRH) Board of Trustees recently approved the hospital’s property tax rate for the upcoming fiscal year, maintaining the county tax rate at $0.48 per $1,000 of property value. This decision ensures continued financial support for vital healthcare services without increasing the tax burden on Dickinson County residents.
At just 2% of the average property tax bill in Dickinson County, LRH’s tax rate remains one of the lowest among county-supported hospitals in Iowa. In fact, out of 44 county tax-supported hospitals statewide, LRH has the second lowest tax rate, ranking 42nd out of 44 hospitals. The median tax rate for similar hospitals in Iowa is $1.98 per $1,000 of property value – more than four times LRH’s rate. Additionally, most hospitals receiving tax dollars are designated as Critical Access Hospitals, which are typically much smaller and provide fewer services than LRH.
The $0.48 allocated to LRH funds essential healthcare services in Dickinson County, with the majority directed toward ambulance services and hospital operations:
- $0.27 for Ambulance Services:
Unlike many counties where ambulance services are operated separately from hospitals, LRH provides this critical service directly. Tax support in this area generates $1.1 million, covering approximately half of ambulance operations, as patient insurance payments account for the other half. Additionally, these funds help support the purchase of replacement ambulances, which the 2025 cost runs around $300,000 per ambulance.
- $0.21 for General Hospital Operations:
Generating $850,000, these funds help address staffing costs and inflationary pressures. Healthcare salary costs continue to outpace inflation, and national staff shortages have forced hospitals including LRH to rely on contract workers at significantly higher costs. Meanwhile, inflation peaked at 9% in fiscal year 2023, while insurance reimbursement rates only increased 2-4%. This funding allows LRH to continue to provide high quality care by narrowing the financial gap created by these economic challenges. Additionally, the funds are used to offset care that is provided to patients who are unable to pay for them. Over the years, that number has been between $1 million and $2 million annually.
“We take being good stewards of the funds we receive very seriously,” said LRH President and CEO Jason Harrington. “By maintaining a stable tax rate while providing essential healthcare services, LRH remains committed to serving Dickinson County with quality, accessible, and affordable care.”
