Jack Evans
A
PROPOSED BILL IN THE
COUNCIL OF THE DISTRICT OF COLUMBIA
To provide a twenty-year
prospective tax abatement to Greater Southeast Community Hospital
Corporation ("GSCH") and Hadley Memorial Hospital ("HMH")
to promote the economic stability of the Hospitals and help ensure the
continued provision of quality health care services to the residents of
Southeast Washington.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act
may be cited as the "Greater Southeast Community Hospital Corporation
and Hadley Memorial Hospital Tax Abatement Act of 2001."
Sec. 2. Findings.
(a) On May 27, 1999, after providing over 35 years of
quality medical services to the residents of Southeast Washington, Greater
Southeast Community Hospital ("GSCH") filed for protection under
Chapter 11 of Title 11 of the United States Code in the United States
Bankruptcy Court for the District of Columbia to enable GSCH to continue
its operations while it reorganized its financial affairs;
(b) On
December 31, 1999, Doctors Community Healthcare Corporation ("DCHC")
acquired GSCH out of bankruptcy, through its subsidiary Greater Southeast
Community Hospital – 1 ("GSCH-1 ");
(c) GSCH
is located in Ward 8 of the District of Columbia, and at the time GSCH-1
acquired GSCH, GSCH employed 998 individuals. Currently, GSCH employs
1,087 individuals;
(d) In
order to stabilize the financial condition of the facility and continue
providing quality health care services to the residents of Southeast
Washington, GSCH plans to invest over $84,000,000 in property, plant and
equipment over the next 20 years;
(e)
Since its acquisition of GSCH, DCHC has invested over $308,000 in property,
plant and equipment. During this same period, DCHC has expended an
additional $2,600,000 to subsidize the operations of the GSCH;
(f) DCHC
acquired Hadley Memorial Hospital ("HMH") through its subsidiary
Pacin-Hadley Memorial Hospital ("P-HMH") in 1992. Since that
time, P-HMH has invested over $13,000,000 in property, plant and
equipment. Over the next 20 years, P-HMH plans to invest an additional
$16,000,000 in property plant and equipment;
(g) P-HMH is also located
in Ward 9, and it currently employs 365 people;
(h) In
addition to the plant and equipment expenditures set forth above, during
the past five years, DCHC has expended $48,000,000 to subsidize the day to
day operations of HMH;
(i) Over
the next 20 years, HMH will pay an estimated $7,358,000 in real estate
taxes, and GSCH will pay an estimated $13,580,000 in real estate taxes;
(j)
Together GSCH and HMH are economic engines for the District of Columbia
and are essential healthcare providers for the citizens of Wards 7 and 8;
(k) Both
HMH and GSCH (collectively the "Hospitals") have been and
continue to operate at a loss; and
(1) The
District recognizes the economic and social importance of the Hospitals to
the residents of Southeast Washington and is committed to ensuring that
viable sources of quality health care are maintained in Wards 7 & 8.
Sec. 3. Chapter 10 of Title
47 of the District of Columbia Code is amended to read as follows:
(a) The table of
contents is amended by adding a new section designation "§47-1051.
Greater Southeast Community Hospital Corporation and Hadley Memorial
Hospital.".
(b) A new section
47-1051 is added to read as follows:
"§47-1051. Greater
Southeast Community Hospital Corporation and Hadley Memorial
Hospital."Beginning Tax Year
2001 and ending tax year 2020, the property in the District of Columbia
owned and operated as Greater Southeast Community Hospital and Hadley
Memorial Hospital, together with improvements thereon and
furnishings thereon, with equitable and legal title in the name of Doctors
Community Healthcare Corporation, hereby receives a real estate tax
abatement so long as the same is used in carrying on the purposes and
activities of the Greater
Southeast Community Hospital and Hadley Memorial Hospital.".
Sec. 4. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report
as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home
Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code § 1-233(c)(3)).
Sec. 5. Effective date.
This act shall take effect following approval by the Mayor (or in the
event of veto by the Mayor, action by the Council to override the veto), approval by the
Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the
District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved
April 17, 1995 (109 Stat. 116; D.C. Code § 47-392(a)), a 30-day period of Congressional
review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia
Register.