Residents to support hospital with sales tax

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RICHARDTON (AP) - Voters here approved an additional 1 percent sales tax to support the town's financially troubled hospital .

The Richardton Memorial Hospital and Health Center has been trying to repay $220,000 it owes Medicare for an overpayment last year.

Residents voted 108-75 on Tuesday for the sales tax increase.

Richardton City Auditor DeEll Hoff said the tax would generate up to $30,000 annually for the hospital. The hospital already gets half of the current 1 percent sales tax, or about $12,000 a year, he said.

"Richardton is an older community and the people who support the facility need to have it there," said Jim Opdahl, hospital administrator. "This is a real positive thing and it's nice to know the community is behind us and supports an additional sales tax."

He said the sales tax would help get the hospital's finances in order.

"It's almost impossible to generate a bottom line by other sources," Opdahl said. "The sales tax would contribute to a positive cash flow."

The hosptial has filed a lawsuit accusing a father and son and their management group of mismanagement and seeks at least $50,000 in damages.

Bruce Howe Jr., his Dakota Medical Resources Group and his father, Dickinson attorney Bruce Howe Sr., are countersuing the hospital, saying they are owed more than seven years' worth of salary.

Their lawsuit alleges they were wrongly fired by Richardton Health Center officials in October, a year after being hired.

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