Hospital Districts Created

to Ensure Quality Rural Health Care

The Minnesota legislature created special taxing districts in 1966, recognizing that many rural areas struggle to ensure access to quality health care. There are currently 38 hospital taxing authorities in Minnesota, which include hospital districts, cities and counties.  Additionally there are 10 hospitals that are sponsored by faith-based organizations. Hospital districts are a political subdivision of the state and have ‘perpetual succession’ status.


A hospital district is authorized in Minnesota statute to acquire, improve, and run hospitals and nursing homes that the hospital district board decides are necessary to meet the health care needs of the community.


Hospital District Benefits

There are several key benefits to having a hospital district beyond the taxing authority. They include:

  • Community oversight and input into the local health care services being provided.

  • The hospital district has unique access to federal and state grants and other funding. Non-governmental entities such as Essentia Health do not have access to these special funds.

  • The hospital district can also qualify for special reimbursement for nursing home care.

Hospital District Responsibilities

Managing the business of the Hospital District requires careful oversight of fiscal and legal obligations for the new Pine Healthcare Campus. This Board is also very active in promoting the health and wellbeing of area residents. The following is a partial list of responsibilities.


Support New Medical Services

Review, approve and possibly help finance changes necessary to the Pine Healthcare Campus so new services can be offered, such as: 

  • New ambulance facility being built

  • Cancer infusion center underway


Manage the Loan Provisions 

This nearly one foot stack of loan documents below was required to build the Pine Healthcare Campus. The Hospital District must maintain compliance with all of these provisions.








Manage the lease

Oversee the many lease requirements of both the Hospital District and Essentia Health, who leases the Pine Healthcare Campus. 


Health Education

Various seminars are offered periodically for the area citizens.


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