Estimating the Impact of a Provider Tax on Oregon Hospital Net Income
Friday, March 6, 2009 at 02:50PM Dr. John McConnell was commissioned by the Oregon Health Fund Board to evaluate the impact of net income to Oregon’s hospitals if a 4 percent investment via provider taxes were adopted. Released in February, his findings displayed the following:
* Hospitals in Oregon would lose an estimated $60 million in net income if the current provider tax expires and a new revenue source is not found to fund coverage for low income Oregonians.
* All of the 32 small and rural hospitals would come out ahead under any provider tax scenario, with net benefits totaling almost $9 million a year;
* Of the 25 larger hospitals that would pay the tax, eight would get back more than they pay in taxes from increased revenue from new paying patients and reduced uncompensated care;
* The majority of the remaining hospitals would recover more than 70% of the taxes they pay from increased patient revenue


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