Healthcare Corporations Saved Billions in Taxes While Cutting Coverage, Report Finds

A new report reveals that seven major healthcare corporations collectively saved over $34 billion in federal taxes through provisions of the 2017 tax law and its recent extension, while simultaneously reducing access to healthcare for millions of Americans.

The findings, released today, indicate the tax savings were achieved through a combination of the corporate tax rate reduction and the exploitation of tax loopholes related to stock options and offshore profits. These savings did not translate into lower costs for patients or improved care; instead, funds were directed towards increased executive compensation and shareholder payouts. The report also highlights a pattern of insurance denials, with initial approvals often overturned on appeal, potentially delaying or disrupting critical medical care.

One case detailed in the report involves John Cupp, who died of cardiac arrest after a necessary catheter exam was twice denied by his insurer, EviCore (owned by Cigna), with a less effective stress test approved instead. The report also cites a six-part investigation by NBC News detailing unsafe conditions at hospitals operated by HCA Holdings, including issues like roaches in operating rooms and understaffing. Similar problems were found at facilities owned by Prospect Medical Holdings, which filed for bankruptcy after a private equity firm extracted over $650 million in dividends. This trend of prioritizing profits over patient well-being is raising concerns about the future of healthcare access and quality in the United States – a system already facing significant challenges, as detailed by the Kaiser Family Foundation.

The report calls for increased transparency, fairer tax policies, and stronger regulatory oversight of healthcare institutions, including closing tax loopholes and raising the corporate tax rate. Officials stated that addressing these issues is crucial to ensuring that healthcare prioritizes people’s needs over corporate profits and to prevent further erosion of access to affordable, quality care.