Hinsdale Hospital Should Pay More For Water: Official

HINSDALE, IL — Hinsdale's hospital became a focus during a village discussion this week over an increase to water bills to pay for system improvements.

The hospital, officially known as Amita Health Adventist Medical Center Hinsdale, is the village's largest water user. As a nonprofit, the hospital pays no property tax.

At the same time, the village has a practice of subsidizing its water account with dollars from its main fund, which pays for day-to-day operations of services such as police, fire and street maintenance.

During a discussion, Trustee Neale Byrnes said he wanted to make sure the hospital pays a higher rate under proposed changes. But others pointed out the hospital already is paying a premium — a rate that is 50 percent more than others because it is such a large user.

"I think their rate should be raised," Byrnes said. "I know they're already paying a higher rate."

Village President Tom Cauley said it was completely fair to charge a premium for larger users.

"They are the biggest user of water. They do not pay a property tax, and the water rate is really the only tax we have for them," he said.

Trustee Matt Posthuma, who presented the water rate proposal, said the hospital is the only entity paying a 50 percent premium.

"They're not going to have an increased water rate based on what we're doing here," he said.

Byrnes responded, "I still think they should have a higher rate. Maybe we should take a look at that."

The hospital is part of the Amita Health chain. Like most such organizations, Amita is a registered nonprofit, with its chairman making nearly $3 million and other executives pulling in more than $1 million, according to 2019 tax records.

A spokeswoman for Amita Health declined to comment.

At the meeting, Cauley explained the need to change water rates.

"We don't raise fees and rates just because we can, We do it when there is a reason," he said. "We've been struggling for a while. We've been taking money from the general fund to finance fixing the water system. Really, the water system should be self-sustaining. We've been trying to move to that over a period."

The Village Board took no vote on the issue.