Mill levy funds are used for maintenance and operations
Hello, I am David Shaw, CEO/Administrator at Nor-Lea Hospital District.
Today, I want to discuss a topic that frequently raises questions: The Nor-Lea Hospital District Mill Levy.
Nor-Lea Hospital District was established in the mid-70s through legislation in New Mexico, thanks to Senator Bill Lee. Nor-Lea Hospital District has a board of five elected members representing various areas, encompassing districts within the Lovington and Tatum school districts.
The district can levy taxes on residents of the Nor-Lea Hospital District. Currently Nor-Lea assesses a mill levy tax of four mills.
This 4-mill tax is broken into two separate acts a 1.5-mill tax and a 2.5-mill tax, voted on every four years, each act staggered by two years. The average homeowner in Lovington pays just over $100 per year to support the hospital district via property taxes.
Almost 40 percent of the taxes that support the Nor-Lea Hospital District are derived from oil and gas production and equipment taxes.
Nor-Lea Hospital District by its nature is a community-based hospital and it is important to know who your elected board member is representing your district, as they represent your interests in the hospital.
The mill levy funds, according to its enabling legislation, are to be used for maintenance and operations of the hospital.
NLHD utilizes the funds for four primary purposes:
• First, provider recruitment has been a critical component of our growth strategy and efforts to fill the health care gaps in Lea County. Since 1999, NLHD has increased the number of providers from 5 to 89. Mill Levy taxes assist with offsetting these recruitment costs and providers salaries.
• Second, NLHD has leveraged the mill levy taxes to incubate new services that were previously unavailable in Lea County. This includes the Nor-Lea Cancer Center, Lovington Wellness Center, and a variety of specialty programs to include the Pain Center, Neurology, Wound Care Center, PET CT and Nuclear Scanning to mention a few.
• Third, NLHD uses these funds to offset the cost of maintenance/renovations to its facilities. Recently, NLHD’s ER underwent a renovation creating private exam rooms, increased security and behavioral health rooms for patients.
• Fourth, mill levy receipts are utilized as the District’s safety net for the most vulnerable who qualify for indigent or charity relief. As part of this effort, funds go to offset expenses related to our medical transportation program and the efforts of our Community Health Workers.
As a taxpayer of the Nor-Lea Hospital District, you should expect a good return on the mill levy taxes you are paying. I would argue that you are receiving an excellent return on your investment.
Nor-Lea has grown in the past 25 years from a workforce of 89 employees to the present day 620 employees, making it the second largest employer in Lea County.
The economic impact of this growth has spurred business and housing growth throughout the District. Nor-Lea Hospital District was recognized as one of the best run businesses in New Mexico with the receipt of the “Zia Award for Performance Excellence” in 2019.
Lea County had one of the worst records of access to care in a rural area of New Mexico in 1999.
Present day Lea County has one of the best records for access to primary care in a rural area of New Mexico.
Our cancer center was established in 2005 and further expanded on three separate occasions. This has improved access to cancer care in Lea County and the surrounding SE New Mexico area. Today cancer mortality rates are lower than in the early 2000’s.
The NLHD board of trustees and I meet monthly to review the financial and operational performance of the District.
In addition, we meet annually for a strategic planning session which includes input from the public. We do all of this to be transparent and good stewards of the mill levy taxes we receive.
Our board meetings are open to the public and are held the 4th Wednesday of each month.
Thank you for your support, and we are here to answer any questions you may have about the mill levy or our operations.
David Shaw has been the CEO of the Nor-Lea Hospital District for 23 years.
