BONNERS FERRY — Boundary Community Hospital is proposing a two-year, $3 million special hospital tax.

Set for the Nov. 3, 2026, general election, if approved, the temporary levy would collect $1.5 million per year and end after 2028, hospital officials said. The levy needs a simple majority to pass.

“Our responsibility is to make sure Boundary County residents understand both the financial realities facing their hospital and exactly what this proposal would fund," said Bryce Cordle, Boundary Community Hospital chief nursing officer and who will take over as Boundary Community Hospital's CEO in October. " This is a community decision, and we want voters to have clear, factual information so they can make an informed choice.”

If approved, levy funding would be divided into two primary areas: $750,000 annually for Emergency Department technology, equipment and personnel; and $750,000 annually for hospital infrastructure, essential utilities, personnel and physical improvements.

The estimated annual cost is approximately $58 for every $100,000 of taxable assessed property value.

BCH officials said the levy is part of an effort to ease financial strain on the hospital while continuing to provide essential medical services in the community. The hospital is also pursuing ways to boost operational efficiency as well as appropriate reimbursement, grants and other available funding sources.

As BCH experiences many of the same financial pressures affecting rural hospitals across the country, hospital officials said it became apparent that a levy was needed to help offset those "significant financial and operational" challenges.

BCH officials said the levy would help the hospital continue to provide the same level of services it currently offers.

The hospital’s 2026 operating budget is about $25.9 million, with an average daily operating cost of nearly $72,000, BCH officials said. Boundary County currently provides about $370,000 annually to BCH, enough to cover roughly five days of hospital operations.

Among the health care services offered are 24/7 emergency care, diagnostic imaging, laboratory and rehabilitation services, surgery, cardiopulmonary care and primary and specialty care through hospital clinics.

About 80% of the hospital's patients are covered by Medicare, Medicaid or TRICARE, which may not fully cover costs. At the same time, the cost of everything from prescription drugs to medical supplies and personnel continues to rise.

As a result, BCH officials said the hospital had an operating loss of about $1 million in 2025.

Hospital officials said Boundary Community Hospital is not alone in its financial and operational challenges. Rural hospitals throughout the nation are in a similar position.

"Rural health care providers often serve smaller populations while maintaining essential services that must remain available regardless of patient volume," officials said in a press release.

In addition, rural hospitals can struggle to attract and keep skilled medical personnel, face increasing supply and medication costs and have a higher proportion of patients covered by public insurance programs.

According to the American Hospital Association, 48% of rural hospitals operated at a financial loss in 2023. The organization has also reported that more than 100 rural hospitals have closed or converted to other types of health care providers over the past decade, BCH officials said.

Additional information on the levy, including financial information and opportunities to ask questions, will be presented in the near future, officials said.

"The hospital’s role is to provide the facts," hospital officials said. "Boundary County voters make the decision."