BOISE, Idaho (Legal Newsline) – Idaho Attorney General Lawrence Wasden announced an agreement with St. Luke’s Health System and two hospital districts over ownership and operation issues related to the hospitals in McCall and Mountain Home.

According to claims, the two hospital districts transferred their hospitals to St. Luke’s and agreed to remit tax revenues to help fund operations at St. Luke’s hospitals.

“The Idaho Constitution prohibits a government entity like a hospital district from donating assets or transmitting tax revenues to help support the operations of a private entity,” Wasden said. “That’s exactly what St. Luke’s agreements with these hospital districts did.”

As part of the deal, St. Luke’s has agreed to transfer ownership of the hospitals’ real and personal property back to the districts involved. Under new terms, St. Luke’s will lease the hospitals and pay operational costs. The districts can now use tax dollars to fulfill funding requests from St. Luke’s. However, the districts must retain ownership of all purchased items.

“These matters could not have been resolved without the commitment and cooperation of the districts and St. Luke’s,” Wasden said. “I appreciate the parties worked with my office to find a resolution. It’s always a good day in my book when opposing sides can solve complex problems without having to litigate in court.”

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