Black Belt hospitals among 50 rural facilities approved to give tax incentive for donations

Rural hospitals across Alabama will be asking industries, businesses and individuals to make donations in exchange for a new dollar-for-dollar tax incentive that starts Jan. 5.

Black Belt hospitals have already started making the pitch to supporters to participate in the new Rural Hospital Investment Program that was approved by the state Legislature in the spring to provide rural hospitals with a new revenue source so they can keep their doors open and better serve rural markets.

Vaughan Regional Medical Center hosted a meeting on Wednesday with major Dallas County players at the Five & Dime downtown to offer more information about the program that allows tax credits for donations that could add up to $750,000 toward a hospital’s revenue this year.

The program is open to 50 rural hospitals and has an annual statewide cap of $20 million for 2026, so not every hospital will get the full $750,000 if the cap is met before their donors act for their chosen agency, said Stephen McCormick, vice president of government relations and workforce development for the Alabama Hospital Association.

The message to Vaughan supporters was to donate as soon as the door opens on Jan. 5 to ensure it gets the full amount.

Vaughan CEO Michael James said the hospital has many financial needs, including purchasing new equipment, caring for an aging facility and paying practitioners a competitive wage to keep them here. Rural hospitals also get low reimbursement from Medicaid, making budgets tight.

More from this section

Spain rescues hundreds of exotic animals from unlicensed shelter

How gas prices have changed in Birmingham in the last week

India and Pakistan blind women show spirit of cricket with handshakes

Selma businessman and Vaughan board member Rex Jones said he has seen the success of this program in Georgia and that donors there “love what it’s doing for their hospital.”

“I don’t want to live in a city without a strong hospital,” Jones said. “And it is hard to recruit good businesses here without a healthy hospital.”

Jones added the hospital is a multiplier by providing good-paying jobs as well as providing healthcare to its community.

Vaughan is also the second largest employer in Dallas County and is a for-profit that pays $12 million in taxes to local government, James said.

The Rural Hospital Investment Program is approved for three years with a cap of $25 million for 2027 and $30 million for 2028.