Healthcare Facility Tax Appeals

They should — but assessors often ignore them. Healthcare facilities that rely heavily on Medicare and Medicaid reimbursement face capped revenue that limits profitability and, by extension, property value. A proper assessment should account for reimbursement rate pressure when determining fair market value. Facilities with high Medicaid census are particularly affected, since Medicaid reimbursement rates in most states do not cover the full cost of care — creating a structural cap on profitability that any reasonable income-based valuation must account for. Documenting the payor mix and its income implications is a critical step in these appeals.

Yes. Nursing homes, assisted living facilities, rehab centers, and other healthcare properties have the right to appeal their property tax assessments. Regulatory burden, occupancy fluctuations, and reimbursement limitations all provide strong grounds for an appeal. Start with a free assessment review. Because healthcare properties are often assessed on a mass-appraisal basis using generic commercial benchmarks, the gap between the assessed value and what the facility would actually sell for in the healthcare real estate market can be substantial. That gap is the opportunity a well-constructed appeal exploits. Learn how the commercial property tax appeal process works from filing through resolution.

Healthcare facilities face unique factors that affect value: licensing and regulatory requirements, staffing mandates, certificate of need restrictions, equipment and infrastructure requirements, and revenue tied to government reimbursement rates. These factors limit marketability and reduce fair market value compared to standard commercial properties. When a buyer evaluates a nursing home or assisted living facility, they are not buying a generic building — they are acquiring a licensed operation with specific census characteristics, payor mix, regulatory history, and revenue constraints. A valuation that ignores these factors is not measuring the same asset that the market is pricing.

Savings depend on the size of the facility, the degree of over-assessment, and local market conditions. Healthcare property owners routinely see meaningful reductions in their annual tax bills. There's no cost to find out — request a free review to see if your facility qualifies. For nursing facilities and assisted living operators managing thin margins, even a modest reduction in annual property tax liability can have a meaningful impact on net operating income and facility viability. Our team has achieved six-figure annual reductions for healthcare clients in Michigan. Read what our clients say about the results.

Healthcare appeals are most effective when they are supported by evidence that quantifies the sector-specific constraints on value that generic assessors overlook. Financial documentation — Medicare and Medicaid cost reports, census records, actual revenue by payor source, and operating expense statements — establishes the income picture from the ground up. Regulatory documentation, including licensure status, deficiency histories, staffing ratios, and certificate of need records, helps establish the limitations on marketability and alternative use. Our team reviews your facility's available documentation and builds the most complete and persuasive evidentiary record for the appeal. Our property tax appeal evidence resource explains what makes documentation most effective.

Healthcare property tax appeals that are grounded in sector-specific financial and regulatory evidence have a strong track record, particularly for facilities where reimbursement-driven revenue limitations and regulatory compliance costs have not been reflected in the assessor's income model. Our team screens each engagement before proceeding, pursuing appeals only where the evidence justifies an expectation of reduction. Most healthcare appeals are resolved through negotiated settlement, avoiding the time and cost of formal tribunal proceedings. The free review is the starting point for determining whether your facility's assessment is out of step with its actual market value. Read more about what drives success in commercial property tax appeals.

EPTA handles healthcare property tax appeals on a full contingency basis — no upfront cost, no retainer, and no fee unless we achieve a reduction in your facility's assessed value. Our compensation is a percentage of the actual tax savings realized, calculated over the period of the reduction. This structure is particularly appropriate for healthcare properties, where owners already face compressed margins from reimbursement rate pressure and cannot absorb the cost of an unsuccessful appeal. We review each facility at no charge to assess the strength of available arguments before committing to an engagement. Our interests and yours are fully aligned: we are paid only when we deliver savings. Learn more about how contingency fees work in property tax appeals.