Eight-year transition period would support Ennis hospital as Big Sky begins to collect its own hospital district taxes
By Jack Reaney SENIOR EDITOR
The Madison Valley Hospital District and Big Sky Wellness Coalition—led by the Big Sky Resort Area District—have agreed to terms that would outline the future of health care services between the Big Sky and Ennis communities.
For months, the communities have volleyed lawsuits and petitions, as Big Sky’s Madison County residents look to withdraw from the Madison Valley Hospital District and transfer that portion of their tax dollars into a to-be-created Big Sky Wellness District. They argue the Madison Valley Medical Center in Ennis, funded by MVHD, is not accessible and therefore does not return reasonable services to its Big Sky taxpayers.
After failed petitions to withdraw, Big Sky leaders brought the issue to Helena: Senate Bill 260 proposed to ease special district withdrawal when geographic barriers prevent taxpayers from accessing services within hospital and school districts.
After an initial round of amendments, SB 260 passed the Montana Senate on April 5, and appeared before the House Local Government Committee on April 15, where leaders from both Ennis and Big Sky ultimately supported the newest version of the bill.
New amendments provide ‘framework of mutual benefit’
Before Tuesday’s committee hearing, leaders from both communities came together to negotiate a mutually beneficial outcome.
“This was a difficult bill to start out with, although I think… all the parties have now come together, and come to an agreement on this bill as we move forward,” said Sen. Greg Hertz (R-Polson), who sponsored SB 260.
Attorney Bruce Spencer spoke on behalf of the Madison Valley Hospital District.
“As you’ve heard, we’ve come to an agreement… and it was arduous,” Spencer told the house committee on April 15. “… Had we not done that—just to put this in context for you—you would have had a busload of people from Ennis here, and out in the halls, testifying about the danger of this bill to their community.”
SB 260’s latest amendments outline a gradual, eight-year transition of taxpayer dollars from MVHD to Big Sky’s new hospital district, expanding from the three-year period that passed the Senate.
“We oppose the bill as it’s written today,” Allen Rohrback, CEO of the Madison Valley Medical Center, told the committee. He added that under new amendments, however, the gradual reconciliation payments would allow the “very small, critical access, … independent, community-owned, small hospital not owned by a regional medical center,” to carry on.
Hertz explained that the Ennis hospital can count on roughly $23 million in reconciliation payments before the withdrawal period is complete. “That will give them a 10-year period to continue to plan, and do what they need to do,” Hertz said.
Rohrback said both parties worked hard on the amendments, and despite skepticism, came together to find “an excellent way to move forward” given the challenging situation.
“I really think, it’s the right answer… The solution recognizes that, you know, Big Sky has its own vision of health care in their community, and we respect that,” Rohrback said. “This gives us an opportunity to focus on our other communities, and to plan for the future.”
On the school side, the amendments provide a schedule of reconciliation payments between the Ennis and Big Sky school districts, as well as the creation of an advisory council for Big Sky’s Madison County residents to participate in the BSSD school board.
Emily Dean, director of advocacy for the Montana School Boards Association, said both districts are now in support of the latest amendments.
“We worked really hard with both of the school districts to find some common ground,” she said.
While presenting the bill, Hertz said the Big Sky area has grown remarkably and beyond prediction in the past 30 years. He gave background on the original motivation among Big Sky leaders to push SB 260.
Hertz said most taxpayers in the Ennis school and hospital districts live on the Ennis side, whereas most of the tax revenue is coming from the Big Sky side.
“[Madison Valley residents] aren’t allowing that district to split,” Hertz summarized. “Because they will lose a lot of revenue, up there, that is funding that [hospital] district. That, most likely, could never happen. And I don’t blame those taxpayers.”
Kevin Germain, chair of the Big Sky Resort Area District, spoke in support of the bill.
“SB 260 is not about the wealthy avoiding taxes,” Germain said. “Far from it. It’s about giving a voice to everyday Montanans who are taxed without representation… Now, I’m really proud to share that the Big Sky and Ennis communities, both the school and hospital, have worked very diligently to come together on amendments that strengthen this bill, and create a framework of mutual benefit.”
Hertz explained that Big Sky taxpayers currently pay $38 million to Madison County. Only $6 million would be removed by SB 260, he noted, and the remaining 30-plus-million will continue to be collected in Madison County. With the continued growth of other property tax revenues, the Madison County Commissioners can “help make sure that that community stands strong” by allocating funds within their legal limits.
“I just want to truly thank all the parties. This was a difficult situation, but I think we came together here,” Hertz said.
The house committee voted 16-1 to move the bill to the house floor.
Lawsuits, petition hearing to be put on hold
Ultimately, Spencer said the proponents and opponents still disagree about geographic access, and services provided by the Madison Valley Medical Center, but the amendment resolves the most urgent issues—he said the eight-year reconciliation period will prevent the hospital from being pushed off a financial cliff.
He said a mutually beneficial outcome would not have been possible through the multiple ongoing lawsuits, because they were constrained by the current statutory landscape.
“We think it can be a win-win… Someone was thinking outside the box, and it’s appreciated because it does solve a problem that has created some animosity between the two communities—which hopefully can then, now, be resolved,” Spencer said.
The Big Sky Wellness Coalition and Madison Valley Hospital District are working on a memorandum of understanding to potentially put lawsuits on hold and allow SB 260 to run its course. The court-ordered withdrawal hearing scheduled for April 23-25 is expected to be postponed indefinitely.
Hertz said SB 260 has been “probably one of the most difficult bills of my legislative career,” but he expressed optimism in the face of cooperation.
The committee had essentially no questions after hearing support from Ennis leaders, but Rep. Peter Strand (D-Bozeman) said the hearing felt unusual—typically, proponents and opponents urged the committee to pick a side, which can be “deeply frustrating.”
“What is the magic here,” Strand asked Hertz. “How did you all—because we need to replicate this.”
Hertz responded that the neighboring Big Sky and Ennis communities really wanted to work together and figure it out.
“It was a difficult hearing in the senate. I can’t say it wasn’t,” Hertz said. “You know, when you got school-bus-loads of people showing up, you know—these people came together.”
