KINGMAN – The Hospital District Number One of Mohave County board met on June 2 for a budget meeting. A budget was discussed and presented but it is unclear who formulated the budget.
The budget was presented by Barry Moore, former CFO for KRMC. Moore stated that the revision of the lease between the hospital and the district board is “pretty critical.” No balance sheet summaries were made available for March, April and May, 2026.
“So, the most important information is the projection,” said Moore. “April had one of these payments outgoing as a positive and it’s definitely not a positive, it’s a negative. So that changes things. The revision of the lease is pretty critical at this point because you have some upcoming (expenses).”
Moore stated the total reimbursement to the district would be $233,623 for the secretary and recurring costs but the bottom line would be higher, at $598,045 and suggested that the board should approve this budget rather than the one in the board packet.
“So, if you guys want to use that to approve this for the county, you would have to approve this one rather than the one in the package, which is the difference I just explained,” Moore said.
The district owes $970,300 through 2026 for Intergovernmental Agreements (IGAs) which are paid to Arizona Health Care Cost Containment (AHCCCS) from which KHI/KRMC receives tens of millions of dollars back from a Federal Medicaid fund administered by the State of Arizona.
KRMC is reimbursing the district for the administrative and recurring expenses put forth by the district board for its budget including the funds needed for the “non-federal share” of the IGAs which the district, in turn, pays to AHCCCS. It has been listed in the spreadsheet for 2026 as “community donations.”
A requirement for the hospital being eligible to receive funds from the special Medicaid fund is that a Hospital District Number One of Mohave County must enter into the agreement with AHCCCS to pay the “non-federal” share. Once the district makes the payments to AHCCCS, the hospital receives tens of millions of dollars from those Medicaid programs.
Highlights for the district’s budget include IT services $7,500; high speed copier $15,000; neat board $9,140 (often used in corporate settings or in courtrooms for jury presentations); Health Insurance Portability and Accountability Act (HIPAA) compliance $10,000; website setup $10,000; and Amazon peripherals, $3,500.
The district board does not provide health-related services so it is unclear why they need to be concerned with HIPAA compliance. It was also not revealed where the district board’s office will be located. Including startup costs, the district board’s operating budget is around $102,000.
In any case, KHI/KRMC is basically paying (reimbursing) for the “administrative and recurring costs” of the district as well as the IGA payments. This conceivably means that the district will not, in the near future, be eyeing a tax or issuing bonds. However, it is unclear how this arrangement is being construed as an arm’s length “separation” of the district board and the hospital since the hospital is underwriting the district’s budget and providing funds for the IGAs. A new hospital lease has not yet been unveiled.
The board initially voted to defer action on the budget. However, after Moore’s presentation they voted unanimously to approve his amended budget, which must be submitted to Mohave County by July 1. The next district board meeting was not announced.
