The Southwest Public Policy Institute is proud to stand alongside more than 40 leading free-market and taxpayer advocacy organizations in signing a coalition letter to Speaker of the House Mike Johnson and Senate Majority Leader John Thune. The letter urges Congress to rein in the outsized influence of large non-profit hospital networks and to restore integrity and accountability in federal healthcare spending.
The coalition letter highlights the distortionary effects of federal subsidies, particularly the misuse of Medicare and Medicaid funds, the abuse of the 340B drug pricing program, and the $26 billion gap between the tax exemptions these hospitals receive and the charity care they actually provide. It calls for stronger oversight, the elimination of Medicaid provider tax schemes, and comprehensive tax reform to ensure that non-profit status is tied to meaningful public benefit.
“For too long, large nonprofit hospital systems have exploited taxpayer subsidies and regulatory loopholes while failing to deliver the public benefit they promise,” said SPPI President Patrick M. Brenner. “The Southwest Public Policy Institute is proud to join this coalition in demanding accountability, transparency, and a return to healthcare rooted in free-market principles, not government favoritism.”
The initiative, spearheaded by the Market Institute, has received national attention and was featured by the Center for a Free Economy in a recent article titled “Conservative Groups Push Back Against Big Government Collusion with Non-Profit Hospital Networks”. The American Hospital Association (AHA) also weighed in with a January 2025 fact sheet defending the 340B program, highlighting the ongoing debate between hospital lobbying groups and free-market reform advocates.
As an organization committed to advancing financial transparency and free-market solutions, the Southwest Public Policy Institute believes it is essential to confront the cronyism and rent-seeking behavior that dominate today’s healthcare landscape. Our signature on this letter reinforces our broader mission: reducing government overreach and expanding access to truly competitive, affordable care.
