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Higher property tax bills due in part to hospital and clinical practice consolidation into tax-exempt conglomeratesposted February 17, 2026 A federal cross-subsidy, Section 340B Drug Pricing Program of the Public Health Service Act of 1992, requires Medicaid-participating pharmaceutical manufacturers to sell outpatient drugs at discount prices to hospitals serving uninsured and low-income patients. Clinics are too small to participate, hence the incentive to consolidate into hospital conglomerates. Intended to keep hospitals open in low-income and rural areas, it ends up being an economic incentive to consolidate. The patient base isn't valuable to keeping a hospital in business. Instead, it's valuable for access to the cross subsidy. The benefit can go to hospitals in higher-income areas. The low-income patients themselves don't have access to the drugs at discounted prices but if they are on Medicaid, they don't have co-pays. If hospitals and clinics consolidate into tax-exempt hospital conglomerates, this takes valuable land off the tax rolls, shifting the burden of higher property tax bills onto residents. Dan Snow, a University of Chicago Harris School graduate in Prof Christopher Berry's program and formerly of Assessor Fritz Kaegi's office, has quantified this tax shift in the near western suburbs of Chicago. His case study of the acquisition of for profit MacNeal Hospital in Berwyn by tax-exempt Loyola Medicine whose main hospital, Loyola University Medical Center, is in Maywood, took $23 million equalized assessed valuation off tax rolls, cutting their tax bill by $2.5 million. That shortfall was absorbed by roughly 15,000 surrounding properties, resulting in an average annual tax increase of $100 per property. Fact Sheet: The 340B Drug Pricing Program, American Hospital Association Drugmakers
push back on Illinois 340B drug discount bill The 340B program
has gone off the rails Property
taxes going up? The 340B Program might be partly responsible Luxury home or vacant lot? Cook County assessor misclassifies hundreds of properties, missing $444M in one year aloneby By Alex Nitkin, Illinois Answers Project; A.D. Quig, Chicago Tribune; and Cam Rodriguez, Illinois Answers Project UPDATED: August 5, 2024 at 6:35 p.m. At Illinois Answers Project Web site https://illinoisanswers.org/2024/08/04/cook-county-assessor-misclassifies-hundreds-properties-missing-444m-in-one-year/ At Chicago Tribune Web site https://www.chicagotribune.com/2024/08/04/cook-county-assessor-misclassifies-hundreds-of-properties/ The Office of Cook County Assessor Fritz Kaegi has been failing to update records of changes in land use. It's not the systemic problem ignored by former assessor Joe Berrios for years, but it's still an issue. Note that this also means that the assessments in the years before the development or re-development occurred also would not have taken note that land values had risen sufficiently to make development possible. The story is the result of a joint nine-month investigation by Chicago Tribune and Illinois Answers Project, the investigative journalism project of Better Government Association founded in November 2022. On August 6, 2024, Chuck Metalitz posted a response on behalf of the Georgist community at his blog The Menace of Privilege. Tribune and "Illinois Answers" explain why value of improvements should be excluded from assessments Video: Is a Land Value Tax the Best Option?posted to YouTube August 2, 2004 Chuck argues that a land value tax would incentivize productivity. Video: How Land Value Tax Could Narrow the Racial Wealth and Opportunity Gapposted to YouTube October 21, 2019 "Protecting property values" was a canard used to justify racist housing policy in 1910, and continues to be an excuse used today. But what if property wasn't privately owned? Jacqueline Luqman of The Real News Network talks to Rich Nymoen, president of Common Ground U S A Inc., about why a land value tax could reduce inequality and address segregation in housing. Video: The Suburban Wasteland: How the ‘Burbs Bankrupt Usby Eco Gecko posted to YouTube April 20, 2019 The Suburban Wasteland is a new series which explores the social, economic, and political consequences of suburbanization in the United States. Deteriorating health, political radicalization, social isolation, ecological destruction, and enormous financial waste can all be linked to a development pattern previously unheard of in the whole of human history, and here, we explore why that is. In this first video, we explore how the suburban experiment puts enormous financial pressure on its residents and governments, and just might be building up into a fiscal time bomb for the entire nation. Video: Improving Downtowns: How Landowners Benefit From Public Transitposted to YouTube June 30, 2016 Exciting news! Better Cities Committee has produced the first video in a new series about the social and community benefits of collecting rent on valuable land. This video discusses the relationship between public transit and development in a suburban downtown, Evanston, Illinois. The video was produced with support from Robert Schalkenbach Foundation. Please watch our YouTube channel for upcoming video presentations. What We Are AboutThe free market is increasingly expected to solve a whole host of social and economic problems. No where is this more apparent than in the urban environment. In these more densely populated areas there is both promise and frustration. The presence of people stimulates commerce of all types while the many residents also make demands on the city infrastructure and the local economy. Too often, as the housing stock ages, the neighborhoods decline. Politicians turn to enterprise zones and tax incentive financing to create jobs and stimulate renewal. Administrators struggle to maintain city services as the tax base erodes. The powerful forces of real estate economics cause massive migration as former slums are gentrified with new construction and renovation that prices housing out of the reach of the displaced former residents. Companies desert decrepit buildings and plants to build anew in the suburbs where they hope to attract a better caliber of worker and avoid the higher taxes and crime of the urban core. They often leave behind infrastructure that must be replaced in their new location. Gone too is access to dependable public transportation and their workers are doomed to an automobile centered world. Paradoxically, BCC believes that the very way that cities raise revenue can lead to the solution of many of their intractable problems. The fiscal reform they advocate also unshackles the free market from the monopoly in land and resources so it can more readily realize the expectations we have for it. The simple measure that harnesses these natural forces to work for the community is to limit city revenue to a fee for the exclusive use of land, i.e. a levy based solely on site values. This will tend to lower the cost of land but at the same time it will discourage under utilization of land and prevent desirable land from being held idle in outright speculation. On the other hand, productive enterprise will be unburdened of many taxes and fees by this tax shift - levies that presently are disincentives to activities that are so essential to the health of the city. |
