Property taxes going up? The 340B Program might be partly responsible
7 days ago
- #Property Taxes
- #340B Program
- #Healthcare Consolidation
- The 340B Drug Pricing Program incentivizes nonprofit health systems to expand by acquiring for-profit hospitals and practices, leading to property tax exemptions for these acquired entities.
- When properties become tax-exempt, local governments often redistribute the tax burden to other taxpayers, increasing their property taxes.
- The program has led to hospital consolidation, both vertically (acquiring private practices) and horizontally (acquiring other hospitals), to maximize drug revenue under 340B.
- A case study of MacNeal Hospital in Illinois shows a $2.5M annual tax exemption post-acquisition, leading to increased property taxes for surrounding properties.
- The tax shift is often unnoticed by taxpayers, as the increase is baked into tax rates without explicit disclosure.
- The 340B Program's unintended consequences highlight how federal subsidies can create hidden costs for local communities.
- Transparency in tax exemptions and community benefits is suggested to ensure taxpayers are not unknowingly subsidizing federal policies.