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University Health property tax rate to remain the same for San Antonio area

UH Palo Alto, pictured here, and UH Retama are both expected to open in early 2027
Courtesy photo
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University Health
UH Palo Alto (above) and UH Retama are both expected to open in early 2027.

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The property tax rate for University Health (UH) will remain steady for the coming year at nearly 28 cents per one-hundred-dollar valuation.

An increase in property values in the hospital district allows for the property tax rate to remain the same, according to UH officials.

The UH annual budget usually weighs in at more than $3 billion. Only 15% of the total budget is supported by property taxes.

UH President and CEO Ed Banos briefed Bexar County commissioners on the hospital system's good financial standing this week. 

Three new hospitals are set to open, one at Palo Alto on the far South Side, another at Retama on the Northeast Side, and the Christus Hospital in the Medical Center, which UH purchased for $71 million.

Banos said they're working hard to make sure all three hospitals are properly staffed.

"I will say this, in my whole career, this is abnormal," he said. "You do not see three hospitals opening up within a year, a year and a half of each other. And I will tell you: It's going to be a lot of work from our management team. A lot of support of our board of managers."

Challenges in the next fiscal year for UH include increased health care demand, inflation, and state and federal legislation, including the Trump administration's "Big Beautiful Bill" that tightens Medicaid renewal and eligibility.

Hospital patient volumes continue to rise, up 10% for the first six months of this year, compared to same period for last year. Emergency room visits rose 8% and surgeries were up 7% in the same year-to-date comparison.

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