Medicare payments to public and nonprofit hospitals

From the 2024 DOR Tax Exemption Study

82.04.4311 - Medicare payments to public and nonprofit hospitals Description Public and nonprofit hospitals and community health centers receive a B&O tax deduction for health care services received from the federal Medicare program, state health programs under Chapter 74.09 RCW, or the state's basic health program under Chapter 70.47. The deduction applies whether the revenues are received directly from these programs or through managed health care organizations. The deduction is limited to payments from these governmental programs and does not extend to patient copayments or deductibles. Purpose To recognize that the provision of health services to people who receive federal or state subsidized health benefits by reason of age, disability, or income level is a necessary and vital governmental function. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $156.800 $156.800 $156.800 $156.800 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $143.700 $156.800 $156.800 Local Taxes $0.000 $0.00