Dallas County Commissioners on Tuesday approved Parkland Health’s budget for the 2026 fiscal year.
Despite earlier concerns, leaders expect to have a “slightly positive” operating income while keeping a flat tax rate. However, with property values increasing, the safety net hospital system will still see an increase in its tax revenue.
In August, Parkland’s 2026 budget had about $3 billion in projected revenue against $3.1 billion in total operating expenses. September’s presentation ahead of Tuesday's vote showed the hospital in a better position.
Recent reporting from the system shows it expects to receive more Medicare Disproportionate Share, or DSH, funding, which goes to hospitals that serve a large number of Medicare patients.
Parkland Health President and CEO Fred Cerise told commissioners the hospital system should also receive more property tax revenue than previously expected.
“We had anticipated coming in still slightly negative, but the property valuations came in higher than we anticipated,” Cerise said.
Since 2019, Parkland has decreased the tax rate every year. However, this year, Cerise said Parkland will keep 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 said.
Cerise said Parkland didn’t reduce the tax rate because leaders expect to see some additional budget pressure starting in 2027 from policy changes in the federal budget bill — including to Medicaid and Medicare.
The changes will affect several different revenue streams for the hospital. The future impact of the federal budget bill could mean Parkland loses more than $200 million in governmental revenue a year.
Abigail Ruhman is KERA’s health reporter. Got a tip? Email Abigail at aruhman@kera.org.
KERA News is made possible through the generosity of our members. If you find this reporting valuable, consider making a tax-deductible gift today. Thank you.
