Greater Southeast Community Hospital Corporation and Hadley Memorial Hospital Tax Abatement Act of 2001
Bill 14-9

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A PROPOSED BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Greater Southeast Community Hospital Corporation and Hadley Memorial Hospital Tax Abatement Act of 2001."

Sec. 2. Findings.

(a) On May 27, 1999, after providing over 35 years of quality medical services to the residents of Southeast Washington, Greater Southeast Community Hospital ("GSCH") filed for protection under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Columbia to enable GSCH to continue its operations while it reorganized its financial affairs;

(b) On December 31, 1999, Doctors Community Healthcare Corporation ("DCHC") acquired GSCH out of bankruptcy, through its subsidiary Greater Southeast Community Hospital - 1 ("GSCH-1 ");

(c) GSCH is located in Ward 8 of the District of Columbia, and at the time GSCH-1 acquired GSCH, GSCH employed 998 individuals. Currently, GSCH employs 1,087 individuals;

(d) In order to stabilize the financial condition of the facility and continue providing quality health care services to the residents of Southeast Washington, GSCH plans to invest over $84,000,000 in property, plant and equipment over the next 20 years;

(e) Since its acquisition of GSCH, DCHC has invested over $308,000 in property, plant and equipment. During this same period, DCHC has expended an additional $2,600,000 to subsidize the operations of the GSCH;

(f) DCHC acquired Hadley Memorial Hospital ("HMH") through its subsidiary Pacin-Hadley Memorial Hospital ("P-HMH") in 1992. Since that time, P-HMH has invested over $13,000,000 in property, plant and equipment. Over the next 20 years, P-HMH plans to invest an additional $16,000,000 in property plant and equipment;

(h) In addition to the plant and equipment expenditures set forth above, during the past five years, DCHC has expended $48,000,000 to subsidize the day to day operations of HMH;

(i) Over the next 20 years, HMH will pay an estimated $7,358,000 in real estate taxes, and GSCH will pay an estimated $13,580,000 in real estate taxes;

(j) Together GSCH and HMH are economic engines for the District of Columbia and are essential healthcare providers for the citizens of Wards 7 and 8;

(k) Both HMH and GSCH (collectively the "Hospitals") have been and continue to operate at a loss; and

(1) The District recognizes the economic and social importance of the Hospitals to the residents of Southeast Washington and is committed to ensuring that viable sources of quality health care are maintained in Wards 7 & 8.

(a) The table of contents is amended by adding a new section designation "§47-1051. Greater Southeast Community Hospital Corporation and Hadley Memorial Hospital.".

(b) A new section 47-1051 is added to read as follows:

"§47-1051. Greater Southeast Community Hospital Corporation and Hadley Memorial Hospital.

"Beginning Tax Year 2001 and ending tax year 2020, the property in the District of Columbia owned and operated as Greater Southeast Community Hospital and Hadley Memorial Hospital, together with improvements thereon and furnishings thereon, with equitable and legal title in the name of Doctors Community Healthcare Corporation, hereby receives a real estate tax abatement so long as the same is used in carrying on the purposes and activities of the Greater Southeast Community Hospital and Hadley Memorial Hospital.".

Sec. 4. Fiscal impact statement. 

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code § 1-233(c)(3)).

Sec. 5. Effective date.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code § 47-392(a)), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.