Hempstead County Quorum Court members on Thursday voted to place a proposed 3/4-cent countywide sales tax on the June 9th ballot, a move county officials described as a necessary step to stabilize and preserve Southwest Arkansas Regional Medical Center in Hope.

The meeting in its entirety will be available below this article.

The decision followed an extended discussion led by Justice of the Peace and Budget Committee Chair Ed Darling, who outlined how the county arrived at the proposal after the hospital emerged from bankruptcy declared by its previous owner about 18 months ago.

“Out of the bankruptcy court, essentially a judge threw the operating license and the keys to the hospital on the table and said, ‘Here it is. It’s yours. Let’s go,’” Darling said.

Darling said Medical Properties Trust, which owned the hospital buildings, transferred the facilities to the city and county at that time. “They gave it to us,” he said.

Since then, Darling said, county and city officials have sought assistance from the state with little success.

“We have, during all this time when we have been to the governor’s office and different agencies looking for funding, essentially gotten nothing from the governor’s office or any of those agencies,” he said.

Darling emphasized that while the county cannot fund hospital operations directly, it can fund infrastructure, equipment and improvements. “We can fund the building, the infrastructure and all that that we actually own,” he said. “We can make the improvements. We can add equipment.”

He said the hospital faces significant challenges, including aging equipment and a rapidly changing healthcare landscape.

“If you saw today’s paper, Baptist Health just announced a closure of a 462‑bed hospital in Fort Smith,” Darling said. “At the same time, they announced last week that they were taking over the management of El Dorado’s hospital.”

Darling said the difference between the two cases was local financial support.

“El Dorado stepped to the table and put forward a sales tax package to assist in equipping the maintenance and operation,” he said. “Had they not done that, my understanding is [Baptist Health was] not interested in signing any kind of operating agreement.”

Darling said hospital operators increasingly expect communities to have “skin in the game.” “That’s part of what we’re asking for,” he said.

He said much of the hospital’s equipment is at or near the end of its useful life and that the current operator, Pafford Medical Systems, has invested heavily to keep the facility viable. “The Pafford family has put a great deal, I mean a great deal, of their own money into that facility trying to make it successful,” Darling said. “They’re committed to its long‑term success.”

Darling also described efforts to position the hospital within a regional healthcare network. “The hospital has joined with the other hospitals in the area — Nashville, Ashdown, De Queen, Camden — to join the group to build this network,” he said.

He said potential state funding tied to those networks may become available later this year but would not cover replacement or repairs to buildings. “One of the caveats of that bill is no bricks and mortar,” Darling said. “So essentially, [the county] is still going to be in the bricks and mortar business.”

Darling noted the hospital received rural health clinic certification in September, which he said has improved operating stability. “The feds will cover up to 102 percent of whatever the allowed [charge] is,” he said. “Cashflows are improving in the hospital. We’re still operating at a loss.”

The proposed tax would be countywide rather than city‑only, Darling said, because of the revenue difference. “If the city did it, it would amount to a decrease of about 30 percent of what we were doing countywide,” he said.

Justice of the Peace Jay Lathrop brought up the potential negative impact of an additional sales tax on outlets.  “I’m afraid that if we get our tax any higher, it’s going to hurt all the local businesses,” Lathrop said.

Darling responded by comparing Hempstead County’s current tax rate of 2 percent to surrounding communities. “Magnolia has a 3.75 [percent],” he said. “Prescott has a 4.0. Washington has 3.0. Howard County’s additional tax is 1.75.”  The addition of a 3/4-cent tax to Hempstead County would raise the rate to 2.75 percent.

Justice of the Peace David Clayton reminded the members that the quorum court was not voting to raise or collect the tax. “We are not doing it,” Clayton said. “We are simply moving forward to allow the citizens of Hempstead County to decide.”

The ordinance to place the tax on the ballot passed, with Lathrop and JP Keith Steed voting no.  Emergency clauses were also passed that allow for the vote to occur in June rather than November so the hospital can obtain funds sooner for needs that involve roof repair, equipment upgrades and HVAC work. 

Another ordinance accepted ownership of the city of Hope's portion of the property in which the hospital operates in exchange for an assurance the amount the city invested in the hospital can be recovered if the property is sold by the county.  It passed as well.

Later in the meeting, Hope‑Hempstead County Economic Development Corporation President Anna Powell reported that the county had been awarded a grant through Arkansas Department of Economic Development, in partnership with the county, the City of Hope and Hope Water and Light.

“Today we received a letter that we will be receiving $340,000 that will be going towards site development,” Powell said.

Powell said the grant will be used to invest in industrial park sites and maintain a pipeline of certified, market‑ready property. “That allows us to market high‑quality, certified sites that have all the due diligence and geotechs to industries to continue to develop our industrial park and create regional economic development,” she said.

Powell said the grant requires local matching funds. “We will be fundraising for those matching funds this year,” she said. 

Powell also noted that a company has submitted a letter of intent to purchase land at the county’s existing certified community site. “So what that means is a company has said they intend to purchase that land for industrial development, which leaves us without an additional certified site,” she said.

Sheriff James Singleton also addressed the court, recognizing Deputies Ricky Pennington and Matthew Whitney for their actions in saving the life of a child following a dog attack. “They saved that child’s life,” Singleton said.

The court also approved a resolution formally declaring a vacancy in District 1 following the death of Justice of the Peace James Griffin on Feb. 23. Griffin was remembered in the resolution as “an admirable and respectful human being” who served the citizens of Hope and Hempstead County.

Other agenda items included approval of an interlocal agreement with the City of Hope regarding district court cost distribution and routine administrative matters, which were approved with no discussion.

Also speaking at the meeting was Terrie James, Hempstead County Cooperative Extension Office Staff Chair, who addressed the court and spoke about the importance of recognizing veterans who served during the Vietnam War, noting that many returned home without the public recognition afforded to veterans of other conflicts.

James read the proclamation aloud, which formally recognized Vietnam Veterans Day as Sunday, March 29th, the 53rd anniversary date of the last American military troops to leave Vietnam, and honored the service and sacrifice of those who served during the Vietnam War. The proclamation expressed the county’s appreciation for Vietnam veterans and acknowledged their contributions to the nation and their communities.

Correction: An earlier version of this story had JP Ed Darling saying the current sales tax rate charged by Hempstead County was 1.25 percent.  This has been corrected to 2 percent. SWARK.Today regrets the error and thanks those who drew it to our attention.