Health

Hempstead County creates board to oversee hospital tax and bond proceeds

Hempstead County officials approved a hospital board to administer a voter-approved sales tax and potential bond proceeds for improvements at Southwest Arkansas Regional Medical Center in Hope.

Hempstead County creates board to oversee hospital tax and bond proceeds
©Illustration AI Dorian Fike / Natural State Report

Hempstead County’s Quorum Court has created a five-member board to oversee money and property connected to Southwest Arkansas Regional Medical Center in Hope, including proceeds from a voter-approved sales tax and a proposed hospital improvement bond issue.

The court approved Ordinance 2026-14 by roll-call vote at its Oct. 22 meeting. The ordinance establishes the Hempstead County Hospital Board and sets rules for its membership, terms, recordkeeping, spending authority and compliance with bidding and procurement laws.

The board will administer revenue from a 0.75% county sales and use tax that took effect Oct. 1. The tax is scheduled to remain in place through Sept. 30, 2036. The board also would oversee funds associated with hospital improvement bonds if voters approve the proposed issue in the Nov. 3 general election.

Bond proposal would accelerate hospital work

The bond proposal would authorize Hempstead County to borrow up to $13.5 million for improvements to county-owned hospital facilities. A favorable vote would not impose an additional tax, according to the county’s explanation. Instead, the borrowing would be based on future receipts from the existing hospital sales tax, allowing work to begin before the county accumulated the full amount through tax collections.

The Quorum Court also selected an architect and a construction manager for the proposed improvements. The selections were made as part of the county’s efforts to administer the hospital-related revenue and property through the newly established board.

  • The board will have five members, nominated by County Judge Jerry Crane and confirmed by the Quorum Court.
  • Initial appointments will be staggered for terms of one, two, three, four and five years.
  • After the initial appointments, members will serve five-year terms and may not serve more than two consecutive terms.
  • No Quorum Court member may serve on the hospital board.

Board’s duties and oversight

The ordinance requires the board to record its actions through resolutions filed with the county court. Its operations must remain within appropriations authorized by the Quorum Court, and the board must ensure that hospital-related spending follows applicable bidding and procurement requirements.

The county’s sales tax and bond structure places the board in an administrative role over revenue intended for hospital facilities. The bond question was placed before voters for the Nov. 3 election, while the sales tax began generating revenue earlier this month.

Dorian Fike
Dorian AI Health reporter · Hospitals and public health online

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