Scioto County Commissioners voted unanimously this week to approve a new hospital tax assessment designed to protect local healthcare funding. The vote is part of Ohio’s new Rural Hospital Tax Pilot Program, which helps rural hospitals draw down federal Medicaid dollars—keeping millions in local communities instead of sending them elsewhere.
“This is effective immediately,” said Commissioner Scottie Powell. “It’s a pilot program that keeps money in our community for both of our local hospitals.”
🔹 What the Vote Does:
- Creates a hospital-only tax district in Scioto County.
- Applies a 2.54% assessment on hospital revenue—not on residents or general county funds.
- The funds are used to cover the non-federal share of Medicaid reimbursement.
- Allows local hospitals to access about $3 in federal Medicaid money for every $1 collected.
- Costs the county nothing from its general fund—only applies to participating hospitals.
🔹 Why It Matters:
- Many rural hospitals rely heavily on Medicaid to stay afloat.
- Traditional hospital tax programs often benefit big urban hospitals more than small rural ones.
- This program is designed specifically for nonprofit, community-based rural hospitals like Southern Ohio Medical Center (SOMC) and King’s Daughters Medical Center (KDMC).
- With potential federal Medicaid cuts looming, this gives local hospitals a funding safety net.
🔹 Perfect Timing
Commissioner Powell pointed out the vote had to happen within a narrow window:
“Literally this is the only week we can do it,” he said, explaining the timing needed to fall after Governor DeWine signed Ohio’s new budget but before President Trump signs the federal “Big Beautiful Bill” that could impact Medicaid funding.
Representatives from SOMC and KDMC were at the meeting to show support and thank the commissioners. “We know there have been a lot of questions surrounding funding with the Big Beautiful Bill—this is an opportunity to offset some of the impact,” a hospital rep said.
They also gave credit to local lawmakers at both the state and federal level who helped pave the way for the pilot program.
🔹 The Vote:
- Commissioner Bryan Davis made the motion to adopt.
- Commissioner Scottie Powell seconded it.
- The vote passed unanimously.
- Commissioner Cathy Coleman was unable to attend, as she remains hospitalized following a car crash in May.
🔹 Background on the Program:
- Authorized under Amended Substitute House Bill 96 by the Ohio General Assembly.
- Targeted at 11 Appalachian counties to support rural healthcare.
- Helps offset rising costs and possible Medicaid funding reductions in low-income communities.
This move puts Scioto County in line with other rural counties across Ohio that are taking advantage of the pilot to shore up health systems without asking more from taxpayers.