Public Policy Institute of New York State, Inc.

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.

Read the report...