Hospital Tax Break Plan Criticized

None by KCPW

(KCPW News) Giving more tax breaks to Utah hospitals is not the way to bring down health care costs, according to Judi Hilman, of the Utah Health Policy Project. Last week, State Senator Michael Waddoups floated the idea of allowing competitors of Intermountain Healthcare to claim the same exemptions from sales, income and property taxes.

"For-profit hospital systems are already accountable to their stockholders and have to take money off the top to pay them," says Hilman. "So we're going to give them more off the top? And what makes us think we're going to be able to hold their feet to the fire and make sure this tax break is going to the needy?"

Waddoups says the state would have to find a way to mandate how hospitals spent the extra cash. He estimates the state would be out at least 10 million dollars by exempting all hospitals from sales, property and income taxes. Hilman says there's a better way to help low-income Utahns:

"We need to make sure low-income people and Medicaid clients have comprehensive, quality coverage," says Hilman. "Not fancier, more routes to charity care."

Hilman's group advocates the state create larger risk pools and centralize administrative overhead for hospitals and health plans to bring down costs.

There are at least two legislative committees and one Governor's task force working on improving Utah's health care system and covering the uninsured.

Email to a friendPosted in KCPW Newsroom and Legislative Coverage. Copyright 2008 KCPW