Boise, Idaho-based St. Luke’s Health System has agreed with the Idaho attorney general to transfer ownership of two hospitals back to the districts that gave the facilities to St. Luke’s several years ago, Becker’s Hospital Review reported.

“St. Luke’s acquired hospitals from special taxing districts in McCall and Elmore County in 2010 and 2013. St. Luke’s said it would maintain and improve McCall (Idaho) Medical Center and Elmore Medical Center in Mountain Home, Idaho, if the districts helped fund operations with annual property tax revenues. If the districts did not uphold their end of the agreements, they would lose the right to repurchase the hospitals back from St. Luke’s,” the news service reported.

But, “The Idaho Constitution prohibits a government entity like a hospital district from donating assets or transmitting tax revenues to help support the operation of a private entity,” said Mr. Wasden. “That’s exactly what St. Luke’s agreements with these hospital districts did.”

St. Luke’s will return ownership of the hospitals’ real and personal property back to the districts and then lease the facilities and pay operational costs.