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Hospital sale means loss of tax revenue in Florence County

January 30, 2019

FLORENCE, S.C. – The Medical University of South Carolina’s acquisition of four hospitals from the Carolinas Hospital System could cost government agencies in Florence County more than $2 million per year in property tax revenue.

Carolinas Hospital System currently pays $1.392 million per year in property taxes to the Florence School District One, $537,000 to Florence County and $267,000 to the city of Florence.

As a state-owned agency, MUSC does not pay property taxes, Florence County Finance Director Kevin Yokim said. Yokim added that since the transaction will close in 2019, the effect on revenues will be initially incurred in the 2020-21 fiscal year.

“We certainly have looked at it [the transaction],” Florence City Manager Drew Griffin said Tuesday.

He said that in addition to the property taxes, Carolinas Hospital System also pays fees for a business license to the city. In total, he added, Carolinas pays the city somewhere between $350,000 and $400,000 each year.

Griffin also said that loss of revenue could be offset by additions and expansions that attract more residents to the city and county.

It was announced late last year that MUSC would be acquiring four hospitals, including two in the Pee Dee. The hospitals to be acquired are Carolinas Hospital System, a 396-bed regional facility, and Carolinas Hospital System-Marion, a 124-bed facility providing a variety of inpatient and outpatient services, as well as a 92-bed nursing center, Chester Regional Medical Center and Springs Memorial Hospital in Lancaster.

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