ATHENS, Ga. — A rural hospital tax credit program expected to sunset December 2024 has help struggling rural hospitals stay afloat, according to officials at the Rural Prosperity Summit Oct. 4.

During the annual summit hosted by the Georgia Chamber of Commerce, industry leaders touted the positive impact of the Georgia HEART Hospital Program, created by state lawmakers to give Georgia income tax credits to taxpayers who contribute to any of the 55 qualified rural hospital organizations in counties with populations of less than 55,000.

“It has been an amazing transformative program that our state legislature had the creativity and the insight to enact back in 2017,” Lisa Kelly, executive director of Georgia HEART, said. “It’s just a brilliant piece of legislation and I think it’s helping small towns all over Georgia and increasing access to health care.”

From 2018 through 2022, Georgia taxpayers could access $60 million of the tax credit each year, with each qualified rural hospital having access to $4 million of the tax credit. In 2022, the cap was increased to $75 million annually for future years.

Carlyle Walton, CEO of Phoebe Sumter Medical Center in Americus, said the hospital has received more than $6 million in funds since the program’s inception. For the current fiscal year, $2 million has come from 80 donors businesses and residents, he said.

Phoebe, which has health care facilites in several locations in southeast Georgia, has used Georgia HEART dollars to fund part of its indigent care program, upgrades to its infant abduction system at the hospital, portable X-ray machine purchases and additional rooms for behavioral health patients.

The hospital has also used funds to purchase a surgical robot this year.

“Just last month, we did 28 cases on our surgical robot over and above what we do in our Bariatric Center of Excellence,” Walton said. “There are not too many 76-bed hospitals that have that capability, but Georgia HEART made it possible and we will continue to make very focused community-driven targeted investments using these funds.”

Walton said he is grateful that allowed uses for Georgia HEART funds are not just limited to equipment.

“For example, we heard there was someone who had major cardiac surgery down in Albany,” he explained. “They were challenged to go back there for cardiac rehab, so we used Georgia HEART dollars to start a cardiac rehab program, locally. So, individuals do not have to make that 45-minute trip up to Albany after they’ve had a cardiac procedure.”

State Sen. Billy Hickman, a Statesboro Republican, said the program has provided a way for the local community to engage into the hospital through contributions.

In his district near Savannah, Hickman said the tax credit program has helped Effingham County’s hospital get a new retail pharmacy, HVAC upgrades at its long-term care facility — and the hospital is planning to open its first pediatric center.

In Candler County, he said the hospital has upgraded its emergency room and waiting rooms, purchased DEXA X-ray scan machines and is now in the process of updating its exterior facade using Georgia HEART funds.

Evans County’s hospital opened its first imaging center a few months ago and purchased new emergency room equipment, as well as new surgery equipment.

“This has allowed them to recruit surgeons and other specialists,” Hickman said.

Charles Tarbutton, president of B-H Trasfer Company in Andersville, said the program is essential in helping rural hospital thrive, which is needed to attract business development to their community.

“I really do question the invest-ability of communities whose hospitals are closed. That seems to me to be just symptomatic usually of other challenges in that community, but it’s hard to envision recover from from that,” he said.

Tarbutton is also a donor to Washington County Regional Medical Center through Georgia HEART, and he touted the hospital tax credit as a benefit to businesses individually.

“From a business standpoint, I think this this tax credit is an incredibly efficient way to transfer capital from taxpayers to organizations that desperately need it,” Tarbutton said. “I can’t justify a donation to our rural hospital in the amount that I can justify as a tax credit. I give up to $50,000 to our rural hospitals and I get a $20,000 deduction on my taxes, or basically 40 percent market rate of a donation.”

Hickman said he plans to introduce legislation in 2024 that will allow the program to continue past its expected Dec. 31, 2024, sunset date.

“This credit provides hundreds of thousands of dollars to these hospitals and I can’t think of another way that would be a bigger game changer,” he said.

As of Oct. 6, more than $3.7 million of the $75 million of available tax credits remained for 2023.

More information on Georgia HEART and qualifying hospitals in the program can be found at www.georgiaheart.org.