The tax New Yorkers pay to train other states' doctors:
A fresh look at the $2.7 billion in subsidies given to New York's medical institutions
Key issues in rethinking New York's HCRA taxes:
- The
$2.7 billion annual cost of hospital subsidies
hits New Yorkers through their health-insurance
bills, and their taxes.
- These
payments were intended as a transitional
measure to help New York's hospitals
adapt to the same deregulated environment
already in place in virtually every other
state.
- The transition seems to have gone
well. Despite some Chicken Little proclamations,
hospital profits have increased, as have
hospital jobs.
- New
Yorkers are paying to train far more
physicians than any other state — at
a cost of almost $1.4 billion a year.
- The
subsidies also pay for charity care. But
is this the best way to meet that need?
- Teaching hospitals thrive in other states without such large subsidies.
