IHC tax fight heats up
"We have made an effort to inform our employees because this will affect them profoundly if it should pass," said Bonnie Midget, a spokeswoman for Primary Children's Medical Center.
Asserting the tax-exempt IHC has grown so big it is a monopoly, Sen. Mike Waddoups is proposing to levy a 3 percent gross receipts tax on the health-care giant that would generate $100 million a year that he wants directed to the state's uniform school fund.
Waddoups, R-West Jordan, said the corporation should be taxed like the big business it acts like. "If they want to be a monopoly, then they can be a monopoly, they should just be treated as one."
But IHC advocates are campaigning hard against Waddoups' proposals. Besides the large newspaper advertisement on Thursday, foes of SB61 have staged two press conferences this week and will be in full force during today's 8 a.m. Senate Revenue and Tax committee hearing on the bill.
Petitions against the measure are being collected in the lobbies of all IHC facilities for delivery to Gov. Jon Huntsman Jr., and several IHC employees are speaking out against the bill either through e-mails or phone calls to their lawmakers.
Midget was joined Thursday at a press conference by opponents of the bill, including the head of the 4th Street Homeless Clinic, the principal of a school where IHC operates a community clinic and the dean of Westminster's College of Nursing.
"What we want to do is ask a lot of questions," Midget said. "The bottom line is we don't know all of the ramifications."
Waddoups rejects the notion that assessing the tax would drive health-care costs through the roof for everyone.
"I think they need to back that up," he said. "I haven't seen any proof of that."
IHC has also said the tax would effectively prevent the corporation from delivering its $67 million in annual charitable care.
The mention of IHC's "charity care" has some supporters of the measure scoffing.
A Salt Lake County couple wound up with a hospital bill of a million dollars after their son, who was born premature with many medical problems, spent the last year of his life in and out of Primary Children's Medical Center.
The father, who said he did not want his identity revealed for fear of reprisal from IHC, said not only was he forced to deal with the death of his son, but the panic that comes with such a huge bill.
"I was a basket case," he said.
Although his insurance company paid close to $900,000 of the bill, there was an outstanding balance of $117,000 owed to IHC.
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