February 17, 2026
Saints, syringes & higher bills
Property taxes going up? The 340B Program might be partly responsible
Neighbors rage: “Nonprofit” hospital deals hike our property taxes
TLDR: A report says hospital mergers fueled by the 340B drug discount program turn properties tax‑exempt, pushing higher bills onto locals. Comments split: some want to scrap all nonprofit exemptions (cue “fake church” jokes), others warn killing 340B would hurt poor communities—fix abuses without gutting safety‑net care.
Property tax bills creeping up? The internet’s verdict: blame “nonprofit” hospital dealmaking turbocharged by the 340B Drug Pricing Program. 340B lets qualifying hospitals buy meds cheap and bill full price, then scoop up clinics and hospitals to expand—conversions to nonprofit mean those buildings stop paying property tax. Cities plug the hole by raising everyone else’s rates, and commenters say it’s a silent surcharge locals never voted for. The piece even tallies 25 for‑profit hospitals bought by nonprofits in a decade, with over half joining 340B within a year. Not huge nationwide, but in the towns it hits, it’s budget‑quaking.
That’s where the drama explodes. One camp is done with exemptions: “no tax breaks for nonprofits, period,” fumes stephen_cagle, as the thread spirals into church memes—xnx jokes we need a “prominent scam church” to nuke the loophole. Others yank the convo back: afewscribbles says universities and hospitals are the real land‑hoarding bosses in downtowns. But shigawire throws a cold, pragmatic splash: beware pharma‑funded hit pieces; scrap 340B and safety‑net hospitals could collapse. The vibe? A three‑way brawl between tax‑hike rage, anti‑loophole crusaders, and healthcare‑realists begging for reforms that fix abuse without vaporizing care. It’s pitchforks vs. IV drips—with City Hall stuck in the middle.
Key Points
- •The 340B Drug Pricing Program enables nonprofit hospitals to buy discounted drugs and bill payers at full price, creating strong revenue incentives.
- •These incentives drive acquisitions of for-profit hospitals and private practices, including vertical and horizontal integration strategies.
- •When acquired entities are converted to nonprofit status, their properties often become tax-exempt, removing them from local tax rolls.
- •In many jurisdictions, lost property tax revenue is automatically backfilled by higher taxes on remaining taxpayers.
- •A search of industry sources identified 25 for-profit hospital acquisitions by nonprofits in the past decade; over half enrolled in 340B within a year.