MARK SCHUMANN

The Indian River Hospital District Board of Trustees yesterday tentatively agreed to levy a 5.2 percent tax increase for the 2014-15 fiscal year.

If the proposed budget is approve at the District’s final budget hearing on Sept. 18, Indian River County property owners, collectively, will pay $13,725,147 in tax to the Hospital District, an increase of $816,375.

The 5.2 percent tax increase means the owner of a $250,000 home with a $50,000 Homestead exemption will pay $203.64 to the Hospital District, much of it going to reimburse Indian River Medical Center for indigent care.

The Indian River Hospital District is a special taxing district created in 1959 to own and operate Indian River Memorial Hospital.  The District now leases the hospital to the Indian River Medical Center.

In addition to reimbursing IRMC for indigent care provided Indian River County residents, the District also funds indigent care through the Visiting Nurses Association, the Mental Health Association, the University of Florida Center for Psychiatry and Addiction Medicine, New Horizons and the Treasure Coast Community Health Clinics.

The Hospital District Trustees and IRMC Board are currently at odds over how much taxpayers should contribute to IRMC’s indigent care costs, with the dispute likely headed to mediation.

The District has budgeted $8,447,759 for IRMC, but the hospital is seeking $9 million. According to IRMC officials, they need the full $9 million to make a profit of $50,000 to $100,000 in 2014.

Critics contend IRMC is driving up its costs by launching programs such as the Heart Center, and now a new Cancer Center and by acquiring local medical practices.  They argue taxpayer should not have to subsidize these ventures.