Today's tax proposal contains several provisions that have consequences to hospitals, health systems and the patients they serve.
Statement on Tax Proposal
Contact: Marie Johnson, 202-626-2351, firstname.lastname@example.org
Colin Milligan, 202-638-5491, email@example.com
Executive Vice President
American Hospital Association
November 2, 2017
Today’s tax proposal contains several provisions that have consequences to hospitals, health systems and the patients they serve. For many communities, tax-exempt financing, such as private activity bonds, has been a key to maintaining vital hospital services. If hospital access to tax-exempt financing is limited or eliminated, hospitals’ ability to make investments in new technologies and renovations in the future will be challenged. At the same time, we are pleased the proposal maintains current policy on charitable contributions that are critical to funding the services that patients need.
In addition, we are concerned about the proposed 20% excise tax for certain hospital employee compensation. There is already a rigorous process prescribed by the Internal Revenue Service for setting up executive compensation. The process requires an impartial panel drawn primarily from the board of trustees, which is charged with setting CEO compensation based on the marketplace and documenting deliberations to attract the best talent. Finally, we are troubled that the proposal would eliminate an important deduction for people with high medical costs.
America’s hospitals and health systems are always open, serving their communities 24 hours a day, seven days a week, 365 days a year. As Congress engages in the important work of reforming the nation’s tax code, we urge them to retain tax code incentives and fair treatment for hospitals that continue to work to provide access to health care in communities all across the country.
About the AHA
The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at www.aha.org.