BOISE, Idaho (AP) — The Idaho Attorney General's Office and St. Luke's Health System are working to settle a dispute involving the health provider acquiring community hospitals formed with special taxing districts.


The Idaho Statesman reports in a story on Tuesday that state lawyers say the agreements are illegal because they violate state laws having to do with rules involving the use of taxpayer money.

A draft lawsuit prepared by state attorneys says tax revenues can't directly benefit corporations.

It also says that the hospital districts didn't get a two-thirds majority in a referendum to approve incurring debt for longer than a year.

St. Luke's has already acquired community hospitals in McCall and Mountain Home, and is in the process of acquiring one in Weiser.