THE IMPACTS OF PROPOSED HOSPITAL TAX
A report by the Oregon Association of Hospitals and Health Systems
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 $620M provider tax on hospitals serving primary urban areas. 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.
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.
With total reduction in gross state product projected at more than $900 million, the loss in economic activity will be felt inside and outside the hospital sector
OPERATING IN THE RED MEANS REDUCTION IN CARE
As is, under the proposed tax, nearly two-thirds (18) of Oregon hospitals will operate with negative margins. This will severely impact the ability of these institutions to maintain current care standards as well as utterly eliminate the option to expand operations or improve care through new investments either in the physical plant or personnel.
LOSSES IN SERVICES TO CHILDREN
LOSSES IN MATERNITY CARE
LOSSES IN CARE FOR RETIREES