Local Option Exemption from Ad Valorem Taxation for Physician Charity Care - 04/24/2018
Our research indicates that the value of charity care physicians provide is declining, primarily due to increasing costs of running a practice and reductions in payments for services they provide to patients covered by commercial insurance, Medicare, and Medicaid. As profit margins shrink, so does the physician’s ability to give away free care. Few real options are available that address this problem head-on. There is no federal tax deduction for the value of donated personal services. Texas’ franchise tax deduction for charity care, though potentially helpful to large or incorporated groups provides little or no benefit to physicians in solo practice, simple partnerships, or other small practices.