History Corner

The closing of the Council hospital in the spring of 2000 left legal confusion and turmoil in the community. In March of 2002, what had been the Council Hospital also stopped functioning as a “skilled nursing home” to become a clinic only. The clinic was reorganized to become designated as a free-standing Rural Health Clinic, offering primary preventative healthcare.

The March 28, 2002 Record reported: “Cherish Estep will continue running the clinic. The clinic’s financial situation is being reviewed on a monthly basis by the board.”

Since the hospital no longer existed, the question of whether to dissolve the hospital taxing district was at the top of a list of concerns. The Record said: “The district does not have to remain in existence in order for the bond to be paid off. If the community decided to dissolve the taxing district it could do so; the existing tax levy would remain in effect and the revenue would be used exclusively to pay off the rest of the bond. The hospital board would be dissolved and the administration of the tax levy and revenues would be performed by the County.”

That April (2002), a petition containing 182 signatures was presented to the Adams County Commissioners, asking that voters be allowed to vote as to whether the current hospital/rural health taxing district should remain intact.

While this question was being debated, McCall’s Payette Lakes Medical Clinic opened a satellite clinic in Council in the business park. What was left of the old Council hospital was set ablaze as a practice exercise for volunteer firefighters. This was the north end of the old hospital. The Record said that the middle section was moved “many years ago and is now Ruben and Bev Lautt’s home.” I believe this is the currently unoccupied house on the east side of the highway south of Council at the big rock pit.

The Record, May 23, 2002: “The Council Rural Health District Trustees signed a temporary 120-day contract with both Weiser Memorial Hospital and with Weiser’s Two Rivers Medical Clinic to provide healthcare in Council, beginning June 1.”

That summer the county commissioners announced they would not put the issue of whether to dismantle the hospital taxing district before voters. Council’s Rural Health Clinic, being managed by Weiser’s Two Rivers Clinic, would remain open.

According to the present Adams County Health Center website, “In December 2004, ACHC became a Federally Qualified Health Center and eligible to receive additional funds and enhanced reimbursement opportunities.”

At this time the City of Council was struggling with the decision as to whether to have the state rebuild Highway 95 through town or build a bypass around downtown. Ultimately it was decided that a bypass was the best option. The state supplied some funding for “downtown revitalization.” Work on that downtown project started in earnest in the spring of 2005.

Meanwhile, the hospital taxing district issue continued to boil. The county commissioners changed their minds, and the taxing district issue was put on the ballot in November 2006. The voters chose to dissolve the Hospital Taxing District, effective January 1. Denise Groves, Administrator of the Health Center, explained that once the Hospital Taxing District was dissolved, the Health Center essentially would no longer exist. She explained that the $470,000 they received annually in federal grants would end because the federal money was contingent upon them having public support in the form of a taxing district. Groves said, according to Idaho statutes, the hospital building and all property with it may have to be sold off immediately.

The hospital board challenged the vote, pointing to the fact that the measure passed by only 14 votes, and that a number of people had been confused by the wording on the ballot and had miss-voted. Their challenge was unsuccessful. County attorney Myron Gabbert said the clinic could no longer operate after January 1, 2007. The district would only continue to exist while it wound up its affairs.

However, a district judge ruled that the clinic could stay open while the hospital board tried to reorganize into another entity that would still be eligible to receive the federal grant money it was awarded. His ruling prevented the county commissioners from taking any steps toward beginning dissolution of the hospital taxing district for 180 days, except as could be agreed upon with the district itself, and also prohibited the hospital taxing district from levying taxes in 2007 for any reason other than to collect toward the bond obligation. The hospital district would have to fully discharge its bond payments before it could be dissolved.

In May of 2007, the county commissioners gave the Adams County Health Center until June 17 to either dissolve their assets or become a new entity – and so they did. It received temporary IRS 501(c)(3) nonprofit status.

In the spring of 2009 the St. Luke’s clinic in the business park closed.

At this point in the story my available information become scarce. The taxing district debt was evidently paid off, and the Adams County Health Center has continued to operate until the present day. Last year (2024) construction of a new clinic building was finished, just northwest of the former hospital / clinic.

The date and time of my presentation on Mesa Orchards at the New Meadows depot has been changed due to the sketchy situation with the highway in the canyon. It is now scheduled for Saturday, April 5 at 2:00 p.m. I’ll be showing more than 100 photos (some that were only recently discovered).

‍