Washington hospitals in trouble, and new taxes won’t help | Opinion

In our hospitals, when we hear a code called, we know it’s an emergency. For example, “Code Blue” refers to a patient experiencing a medical emergency, like cardiac arrest. Today, Washington state hospitals are calling a different kind of code — one that threatens the entire health care system we all rely on.

Pierce County hospitals are in crisis. To balance the budget, Washington state’s legislature is considering proposals that would cut hospital funding by up to $330 million annually while layering on new taxes, including a 5% payroll tax and a 1 % business and occupation (B&O) tax surcharge.

Health care is the second-largest employment sector in Pierce County, supporting more than 54,000 jobs. These skilled professionals are nurses, therapists, lab techs and food service workers. They care for our parents, children, friends and neighbors. Adding millions in new taxes to hospitals and health systems means fewer jobs, fewer services and longer wait times for patients.

Because of this, we are “calling a code” on our state’s proposed budget cuts and tax increases. We are profoundly concerned about the harm that these cuts will cause to our patients, communities and the skilled workforce we call on when we need care.

The health care system in our state is a crucial safety net, but it is fragile. We care for everyone, regardless of their circumstances or ability to pay. Seven in 10 people who are cared for in Washington hospitals are covered by Medicare and Medicaid, which pays 20-50% below the cost of care. In addition, commercial insurance payments have not kept pace with inflation. Yet our own expenses — including employing skilled staff, replacing supplies and upgrading equipment — continue to increase more than 10% a year.

These factors, combined with the lasting impact of the COVID-19 pandemic, mean we are struggling financially, our savings have been gutted and our ability to serve as a community safety net is under threat despite measures to run as efficiently as possible. We cannot absorb new taxes and funding cuts without making painful trade-offs that will hurt patient care.

Over the past four years, hospitals and health systems in Washington have lost more than $4.5 billion. Our own organizations have reduced staff, delayed investments and consolidated services. We took these steps to preserve access to care while weathering historic financial losses driven by rising labor costs, inflation and stagnant reimbursement rates from Medicare and Medicaid.

Everything from primary care and physical therapy to cancer care and rural trauma services could feel the impact of the proposed budgets. Delaying care isn’t just an inconvenience — it can be deadly. In communities like Tacoma, Lakewood and Gig Harbor, patients could face even more overcrowded emergency rooms, longer wait times and limited access to specialty care.

This isn’t sustainable. And it’s not fair to the communities we serve.

We urge lawmakers to make patient care a priority, ensure adequate hospital funding and eliminate the proposed new taxes on hospitals and health systems.