The Wyoming Hospital Association, along with health care professionals across the state, strongly urges members of the House to reject Senate File 69, “Homeowner property tax exemption.” Lawmakers must prioritize policy solutions that strengthen, rather than jeopardize, our state’s health care infrastructure. Instead of advancing harmful legislation, elected officials should collaborate with health care leaders to craft policies that balance tax relief with the need for sustainable public services.
Opinion
Members of the Wyoming House have begun debate on SF 69, which would extend a sweeping 50% property tax exemption to nearly all homeowners in the state, and local revenue decreases will not be backfilled by the state’s general fund. While this may seem like a win for property owners, the reality is such an exemption would have devastating consequences for Wyoming communities, particularly its health care system.
Wyoming hospitals serve as the backbone of their communities, providing lifesaving and compassionate care to residents regardless of their ability to pay.
If passed into law, SF 69 would significantly undermine the financial stability of Wyoming’s entire health care system, especially our hospitals and nursing homes, which rely on local tax revenues to maintain operations. Fifteen of the state’s hospitals operate as Special Hospital Districts, meaning they belong to their communities — and not private investors or shareholders — and depend on voter-approved mill levies to fund critical services and facility upgrades. Cutting property taxes in half could force many of these already vulnerable institutions to make painful cuts, potentially reducing essential health care services in rural areas where access is already limited.
Many hospitals, particularly the 19 designated Critical Access Hospitals, are struggling financially. These CAHs are small, rural hospitals with 25 or fewer beds located at least 35 miles from another hospital. In 2023, every single CAH in Wyoming operated at a loss. These facilities face multiple challenges, including low patient volumes, inadequate reimbursement rates from Medicare and Medicaid, administrative burdens from insurance companies, rising labor costs and increasing prescription drug prices.
Most hospital services operate at a loss and must be subsidized by more profitable departments. Several of our rural hospitals sustain financial losses from operating nursing homes, covering these deficits with revenue from other services. Obstetric care faces a similar challenge, and in recent years, we have witnessed its steady decline across Wyoming. Senate File 69 only serves to further erode access to needed services.
Additionally, Wyoming has one of the highest rates of uninsured residents in the nation, further straining hospital resources. Slashing a reliable source of revenue for these hospitals will only exacerbate these problems, putting lives at risk and weakening Wyoming’s already fragile health care infrastructure.
Beyond providing care, hospitals and nursing homes are economic anchors in our communities. They support over 32,000 jobs, contribute more than $1 billion in employee compensation and generate approximately $2.56 billion for Wyoming’s GDP. Weakening their ability to function would have far-reaching negative consequences, affecting employment, local economies and overall community well-being.
Wyoming’s hospitals are ready to work with the Legislature to find solutions that benefit both taxpayers and communities. But SF 69 is not the answer — it is a dangerous gamble placing Wyoming’s most vulnerable residents and its health care system at risk. The House must stand against this misguided bill and choose a path to ensure the long-term well-being of our state.
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