Little-known Hospital District Number One manages KRMC Stockton Hill property
KINGMAN - Hospital District Number One was formed by voter referendum in 1982 to transfer control of the county hospital to the community, and is a completely different legal entity than Kingman Hospital Inc., the nonprofit organization that does business as Kingman Regional Medical Center and oversees its operations.
The Hospital District owns the original 26 acres and hospital buildings on Stockton Hill Road where the main campus of Kingman Regional Medical Center is located, KRMC spokeswoman Teri Williams said.
In 1983, the Hospital District leased the hospital facilities and equipment to Kingman Hospital Inc., otherwise known as KRMC.
“In simple terms, the district is the landlord of the hospital property on Stockton Hill Road and KHI is the lessee,” Williams explained. “They manage the property.”
KRMC pays the Hospital District $100,000 a month for the main campus facilities on Stockton Hill, and the district provides matching funds for some of KRMC’s capital improvement projects.
Those include expansion of the back parking lot in 2011, construction of KRMC’s hyperbaric wound care center in 2009, expansion of the emergency department in 2009 and construction of the Little Minnows daycare for employees’ children in 2006.
Although the Hospital District has the power to purchase property and capital equipment necessary for expansion of the hospital, it has not done so in many years, Williams noted.
KHI, a separate entity, purchased the Hualapai Mountain Campus in 2011 and additional land near the campus in 2016. The Hospital District was not involved in that purchase.
“The Hospital District has no legal interest in these properties,” Williams said. “They are solely owned by KHI.”
And it’s KHI that’s offering to purchase city-owned land south of Interstate 40. It has nothing to do with any interests of the Hospital District, Williams said.
The hospital is reliant on Medicare and Medicaid for 80 percent to 85 percent of its revenue, and with the uncertainty of future government reimbursement rates, KHI is seeking additional revenue streams, KRMC Chief Executive Officer Brian Turney told City Council in presenting a plan to purchase the land.
Hospital District Number One covers about 10,000 square miles of Mohave County, including Kingman, Chloride, Dolan Springs, Meadview, Peach Springs, Hackberry, Wikieup, Yucca and Topock.
It excludes the area north of the Grand Canyon and the boundaries of Bullhead City and Lake Havasu City.
The district is governed by five elected board members who serve four-year terms without compensation. They are Bill Ekstrom, chairman; Vance Miller, vice chair; Libby Mathiesen; Dan Del Monaco and Stephen Pebley.
The board meets every other month, with the next meeting scheduled for 4 p.m. Tuesday at the hospital.
KRMC started as the 26-bed Mohave General Hospital, which was built by Mohave County in 1922 for $65,000 near the corner of Beale Street and Grandview Avenue in downtown Kingman.
Voters approved a $1.2 million bond in the 1960s to build a new $3 million, 65,000-square-foot county hospital on Stockton Hill Road, with the new 82-bed hospital opening in 1970.
Mohave County sold the hospital to the Hospital District in 1983 for $1.8 million, and the district leased it to KHI, which paid $100,000 down and was responsible for the remaining balance of $1.7 million.
“It was a controversial deal at the time, but it was one of those experiments that turned out well,” Ekstrom told the Daily Miner in a 2013 article. “The county was taking a big chance, but there was a lot of good people in leadership positions involved.”