Sales tax to support Holton hospital going to voters

Holton Community Hospital (HCH) officials are asking Jackson County residents for their support during the Nov. 4 general election. 

Registered voters in Jackson County will be asked on the ballot whether they support a special .25 percent retailers’ sales tax specifically for hospital services.

To help the public understand the need for the sales tax, several public town hall meetings will be held throughout the county this month and next, it has been reported. 

“HCH was fortunate to be able to expand our facility, completed in 2021, which allows for needed specialty and emergency services to be provided to our community. This was after USDA approved an in-depth financial feasibility study performed by an external financial audit company,” said Carrie Lutz, HCH CEO. 

Lutz said that the expansion upgraded all radiology imaging services and improved both patient privacy in pre-op/recovery areas and the flow of sterile processing.

Despite the hospital’s growth, Lutz said federal and state reimbursement rates have not kept pace with rising costs. 

“Reimbursements from Medicare, Medicaid and Medicare Advantage programs, which often delay or deny payment for services, have not caught up with the supply, technology and labor costs that skyrocketed during the pandemic,” Lutz said.

According to HCH officials, healthcare costs rose 30 percent between 2021 and 2022. 

Previously, HCH’s rural health clinics were reimbursed by Medicare at rates closer to the actual cost of providing care. In recent years, however, Medicare reimbursements have been capped. Where the hospital was once reimbursed 100 percent of costs, it now receives 65 percent, it was reported. 

HCH is a private, non-profit 501(c)(3) organization and is only one of five hospitals in Kansas that does not receive any public funding and is not part of a health care system.

It was reported that, if it passes, the sales tax would generate an estimated $400,000 a year for the hospital.

“This small, temporary sales tax would help preserve critical hospital services in Jackson County, ensuring local families can continue to receive care close to home,” Lutz said.

For more on this and other stories, please log in to your holtonrecorder.net account and select "Sept. 10, 2025" under "E-Editions."