Tax bill threatens to stretch Spokane emergency room wait times and access to care

SPOKANE, Wash. — Spokane hospitals warn patients might soon face longer wait times in emergency rooms and for specialty physicians.

A bill moving through Olympia would impose new taxes on these healthcare facilities.

The proposal would limit reimbursement rates, which hospitals say provide the majority of their funding. Lawmakers claim these changes will help address the state’s budget crisis. However, hospitals warn patients will feel the impact.

“Over 70% of our patient population is either Medicare or Medicaid. And yet these funding cuts will affect everyone. Because when you come to a hospital, we don’t check and see what kind of insurance you have,” said Susan Stacey, Chief Executive for Providence Inland Northwest, “if we don’t have the resources to provide those things, it impacts all of our community.”

Providence says these tax increases will raise their costs. A partial fiscal note for the bill released on Wednesday says the bill is expected to bring the Washington State Health Care Authority close to $200 million by 2029. Local hospitals warn the revenue loss for them threatens the industry’s financial health.

“Hospitals play such a key role in some communities,” said Alex Jackson, chief operating officer of MultiCare. “Washington hospitals are the largest employer, so they have an impact not only as an employer, but they also have a huge impact in providing care.”

Both Providence and MultiCare say they’re still recovering from the pandemic. They warn these cuts would cause serious financial problems. Supporters of the proposal argue it would create more balance in the healthcare system, and address out of control spending.

The legislation is now heading back to the state Senate for a final vote before moving to the governor’s desk.