The Haleyville City Council on Monday unanimously approved a $1.6 million funding plan aimed at stabilizing Lakeland Community Hospital while avoiding new taxes or additional long-term financial burden on residents.
The proposal comes as the hospital, operated by the healthcare authority jointly created by the Winston County Commission and the City of Haleyville, continues working to recover from financial strain linked in part to slow Medicare and insurance reimbursements.
Mayor Ray Boshell said the plan is designed to balance the community’s need for reliable healthcare with the city’s responsibility to maintain financial stability. “The council and I want the hospital to succeed,” Boshell said. “We understand the importance of healthcare in this community. We also have a responsibility to protect the financial stability of this city and its people.” He noted that the approach provides immediate support while maintaining structure and accountability.
Under the plan, the city will secure a loan backed by an existing half-cent sales tax revenue stream, effectively advancing approximately three years of that funding along with previously discussed opioid settlement funds. Boshell said the structure allows the hospital to receive $1.6 million in immediate support without increasing its debt or placing new financial obligations on taxpayers. Once the loan is repaid—estimated within two to three years—the half-cent tax will be eliminated, resulting in a reduction in the city’s overall sales tax rate.
Councilman Brian Berry said the proposal provides a clearer, more sustainable path forward compared to other options considered. City leaders acknowledged the situation remains complex and, at times, controversial, as officials weigh the urgency of supporting local healthcare against long-term fiscal responsibility.
Boshell said he plans to meet with hospital leadership later this week to review the plan and ensure alignment with the hospital board moving forward.