On Tuesday, Dallas County Commissioners approved Parkland Health’s budget for fiscal year 2026.
Despite previous worries, executives foresee a “slightly positive” operational income while maintaining a flat tax rate. However, when property values rise, the safety net hospital system will experience an increase in tax revenue.
In August, Parkland’s 2026 budget predicted $3 billion in income against $3.1 billion in total operating expenses. September’s presentation, which preceded Tuesday’s decision, put the hospital in a stronger situation.
According to recent system reports, it expects to earn additional Medicare Disproportionate Share, or DSH, funds, which is allocated to hospitals that treat a substantial number of Medicare patients.
Parkland Health President and CEO Fred Cerise said commissioners that the hospital system should receive more property tax income than originally predicted.
“We had anticipated coming in still slightly negative, but the property valuations came in higher than we anticipated,” Cerise told me.
Parkland has consistently reduced its tax rate since 2019. This year, Cerise stated that Parkland will maintain the same tax rate of 0.212000, with a 6% increase in property tax revenue.
“That moves us from a slightly negative operating income to a slightly positive operating income,” Cerise informed me.
Cerise explained that Parkland did not lower the tax rate because leaders anticipate more financial pressures beginning in 2027 as a result of policy changes in the federal budget bill, including Medicaid and Medicare.
The modifications will have an impact on numerous of the hospital’s revenue streams. The future impact of the federal budget plan might result in Parkland losing more than $200 million in government income per year.
