I’m happy Van Diest Medical Center (VDMC) is operating profitably and is in a very strong financial position. As you can see (from the chart), VDMC is turning a profit and has amassed over $32.5 million of cash and investments (CD’s). Even better, the VDMC long-term debt will be paid off in 2026 –meaning there will be $1.8 million less expenses moving forward.

I believe it is time for the VDMC Board of Trustees to significantly reduce or eliminate their $2,730,596 tax levy entirely — it is “not” needed for VDMC to operate successfully long-term.

Fifty-six Iowa counties do “not” pay a hospital tax levy.

I’ve spoken with each VDMC Board of Trustee member, Lisa Ridge (CEO) and Ashley Allers (CFO) about this situation and asked them to eliminate their tax levy. Despite long-term debt going away, on Feb. 24, the VDMC Board of Trustees decided to keep the same 2.10 tax levy, which represented $2,730,596 in tax revenue for VDMC in their 2025 fiscal year.

I’m extremely disappointed with the Board’s decision which I do “not” feel is in the best interest of Hamilton County.

When a family or business is looking to relocate, one of the items they consider is property taxes. The current property tax rate is 41.79866, which is 3.55668 “higher” (or 9.3% higher) than average to comparable counties. Hamilton County and Webster City are at a disadvantage from a property tax standpoint, and we need to challenge our elected officials to be better.

Consider what could’ve been done with that $2,730,596 of VDMC property taxes. That could’ve paid for a majority of the Daycare renovation, could allow levy room for a 70-year-old high school to get renovated, or the money could be better left in taxpayers’ pockets to save/invest as they see fit.

All of the above would make Hamilton County more appealing to new residents and businesses.

By definition, a business dependent on a tax levy to stay afloat is not successful or a sustainable business to stand on its own long-term. Between donations and property taxes levied on Hamilton County the last 16 years, VDMC has brought in between $40 million and $50 million (maybe even more than that). That is not revenue for services provided, that is money from gifts or taxes from the Hamilton County residents.

With the long-term debt payments going away in 2026, we need to ask the VDMC Board of Trustees — do we have a successful hospital that does “not” need a tax levy, OR do we have an unsuccessful hospital that a different path needs taken?

If the Board feels we “do” have a long-term successful hospital that can stand on its own, there should be “no” tax levy. Remember, the best outcome for Hamilton County is to have a successful hospital that doesn’t need a tax levy.

If the Board does “not” feel we have a long-term successful hospital that can’t be a stand-alone entity after receiving over $40 million of gifts/taxes, holding $32.5 million of cash on hand, and having no long-term debt after 2026 — changes need to be made because we can’t keep throwing tax dollars at something that isn’t working.

• Do we have the correct management in place and the right business plan to operate successfully and profitably long-term? If not, management or business plans can be changed. We’ve seen this done previously with the VDMC choice to remove child delivery services a few years ago.

• If the Board does “not” feel we can do the above to operate a successful hospital long-term, an alternative option would be selling VDMC to a for-profit hospital that has a proven track record for operating a successful hospital. Yes, we would want to put some stipulations in the sale that keep certain key services in the county long-term, but Hamilton County would get the following benefits:

• An initial influx of cash from the sale of VDMC.

• No further VDMC tax levy on Hamilton County residents.

• Hamilton County gains property tax revenue from the VDMC properties in Hamilton County; currently they don’t pay taxes (going from a tax negative to a tax positive).

The reasons I have been given for the levy continuing were due to anticipated capital expenditure needs and the healthcare industry being complex/uncertain. Every important industry has complexities, and that is why you have competent management to navigate.

Additionally, there is a $32.5 million pile of cash on hand as a “buffer” in the event of a negative financial year. The capital expenditures mentioned (roof repairs, CT scanner, mammography equipment, operating room lights) total up to $4.45 million — which is less than 15% of the cash on hand. Overall, I’m confident all of these can be easily managed.

I believe we have a successful hospital with management that can successfully operate long-term without a tax levy. I feel those tax dollars saved or invested elsewhere would be better for Hamilton County as a whole.

The VDMC Board of Trustees (Darcy Swon — Board Chair, David Everson, Kyle Heffernan, Kirk McCollough, Carroll Ose, Doug Bailey and Michelle Zahn) will have a public meeting on March 24th to vote on the tax levy for this coming year. I’d encourage all who are interested to express their desires at that meeting to the VDMC Board of Trustees as they are your elected representatives and have the ability to set, change, or eliminate the VDMC tax levy.

Jake Van Diest

Webster City