(The Center Square) – An Oklahoma lawmaker wants rural hospitals to get a tax break.
Sen. George Burns, R-Pollard, filed Senate Bill 1774, which would let some hospitals receive tax exemptions on the sale of personal property or services for hospital use if the hospitals meet certain criteria, according to a news release.
A hospital must be housed in a building owned by a county or municipality, operated by a tax-exempt organization and located in a population of less than 100,000 people in order to be eligible for the tax exemptions.
A study conducted by the Chartis Group, an independent health care advisory firm, found 453 rural hospitals are vulnerable to closure nationwide, 28 of which are located in Oklahoma. The study also said 46% of rural hospitals have a negative operating margin.
“Nearly half of all Oklahomans live in a rural area of the state, so it’s critical our hospitals in these areas are open and available to serve our citizens,” Burns said. “Unfortunately, more than 80 rural hospitals across the nation have shut their doors over the last decade. Providing hospitals that are operating as a non-profit organization with a tax exemption will help keep their doors open so they can continue to provide high-quality health care for the Oklahomans who need it most.”
The Chartis Group study showed pandemic-related issues added to the stress of vulnerable rural hospitals as they tried to meet needs of their communities. According to the analysis, 62% of rural hospitals do not have any intensive care unit (ICU) beds. Access to ICU beds frequently has been used as an indicator throughout the pandemic to determine the severity of local cases, the study said.
The report also showed 77% of total revenue for rural hospitals was tied to outpatient services, which many hospitals temporarily had to cut back on or completely suspend for months at some point during the pandemic. Some hospitals surveyed by the Chartis Group said doing so resulted in up to $15 million a month in lost revenue.
Burns said the federal stimulus funds that rural hospitals received in response to COVID-19 is a short-term solution and giving the facilities help through tax exemptions could be an outside-the-box solution for the long term.
“This is just one way we can support our rural hospitals and provide them operating relief so they can better serve our citizens,” Burns said.
The bill was assigned to the Senate Finance Committee. Oklahoma lawmakers begin their 2022 legislative session Monday.
via Oklahoma's Center Square News