THE IMPACTS OF PROPOSED HOSPITAL TAX
A report by the Oregon Association of Hospitals and Health Systems | May 2017
A new tax being proposed on Oregon hospital revenues is intended to fill gaps in the State's Medicaid budget. This report is based on the current proposal of a 0.7% provider tax, along with elimination of the Hospital Transformation Performance Program (HTPP) and federally enacted Medicare and Medicaid cuts. The proposed tax will have a dramatic effect on the Oregon economy and hospital workers, as well as on healthcare for Oregonians. Given the nature of the care that hospitals provide, operating margins are traditionally thin compared to other industries, meaning there is little excess revenue that is not immediately used for vital needs.
3 PARTS TO THE NEW PROPOSAL
Hospitals create local jobs that are especially critical in regions with weak local economies.
The chart to the right shows the Portland Metro Area will lose the most jobs.
The map at the right shows the jobs losses projected in each county of Oregon. Jobs lost in rural areas will be particularly damaging to local economies, where hospitals are a principal job creator.
SOURCES AND NOTES
Sources of data include the Bureau of Labor Statistics, the Bureau of Economic Analysis, and Apprise Health Insights.
For more information on data sources click here.