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LaPorte doesn't want to lose hospital

Stan Maddux Times Correspondent

LAPORTE — LaPorte officials are putting together an incentive package to try and keep the new LaPorte Hospital in the city.

An option to decline water and sewer service on any new construction going up outside the city limits under a measure adopted in 2016 could come into play.

Mayor Blair Milo, though, hopes to avoid strongarm tactics, preferring the city remain in a partnership role with the hospital.

"We're trying to listen to their needs and ensure what we're able to try and represent is going to be along the lines of what they need to see and help meet their demands for growth," Milo said.

Milo responded after concerns were expressed Tuesday from the City Council about a lack of information on where the new hospital is going up.

Community Health Systems acquired the hospital in March from IU Health, which retained 20 percent ownership. One of the major terms of the hospital sale was the requirement that the new owner build a new hospital.

So far, no indication has been given by the hospital on the sites being looked at.

Councilman Roger Galloway asked whether a resolution encouraging the hospital to stay in the city should be adopted as a follow up to the LaPorte County Commissioners asking in November for the hospital to make public the terms of the merger.

Specifically, the commissioners asked if there was any chance of IU Health reacquiring the hospital because of financial setbacks CHS began experiencing after the purchase.

In writing, the hospital responded there are limited buy-back options, but that CHS remained committed to serving the community and beginning construction of a new hospital no later than March 2018.

Milo suggested any resolution be positive and respect the boundaries of a for-profit company that must keep certain information, like prospective building sites, confidential until it's ready to be announced.

No light was shed on the incentives the city is preparing to offer, but Galloway speculated some sort of tax abatement might be included.

Galloway said he was happy to hear from Milo that the hospital is committed to staying in the city and the other information she had to share.

"It doesn't hurt to ask questions and bring stuff up. That's what we should do," said Galloway.

City Councilman Joe Mrozinske said he would prefer the new hospital go up at its present site because the traffic there helps the downtown.

Anywhere in the city, though, is important not only because of LaPorte always having a hospital, but also for the property taxes the for-profit entity must now start paying.

Prior to the acquisition, the status of LaPorte Hospital was not-for-profit.

"I believe as a council we should do everything within our power to ensure we still have a hospital within the city limits of LaPorte," said Mrozinske.

In June, restrictions on new water and sewer line extensions outside the city were adopted in response to developments going up just outside the corporate limits to take advantage of lower property taxes while still receiving municipal utility services.

Milo said the ordinance has been part of the conversations between the city and leadership at the hospital.

"When that ordinance was passed, it was part of a conversation of ensuring that we are trying to encourage development inside the city limits for any potential new development," said Milo.