Baltimore Anchor Institutions pledge Increased Financial Support to City
BALTIMORE, MD (October 1, 2025) - baltimore Mayor Brandon M. Scott and 14 of the city’s largest non-profit institutions today announced new Payment In Lieu Of Taxes (PILOT) agreements covering Fiscal Years 2027-2031. The institutions – key drivers of Baltimore’s “meds and eds” economy – have committed to substantially increased financial contributions to the city.
the participating institutions are: Grace Medical Center, Johns Hopkins Hospital, Johns Hopkins Bayview Medical Center, Good Samaritan Hospital, MedStar Harbor Hospital, MedStar Union Memorial Hospital, MedStar Mercy Medical Center, Sinai Hospital, Ascension St.Agnes Hospital, University of Maryland Medical Center Downtown campus, University of Maryland Medical Center Midtown Campus, Johns Hopkins university, Loyola University Maryland, Maryland Institute College of Art, and Notre Dame of Maryland University.
Under previous agreements, these organizations contributed between $1.4 million and $6 million annually. The new agreement will double this investment, increasing contributions from $6 million in 2027 to $12 million in 2030, with annual rate increases designed to accommodate evolving financial circumstances. The agreement acknowledges the impact of recent federal funding cuts on healthcare and educational institutions, notably smaller organizations like Grace Medical Center and Maryland Institute College of Art, and will be renegotiated in FY 2031.
“Baltimore’s economy is powered by ‘meds and eds,'” said Mayor Scott. “This agreement increases their shared investments in our city, while recognizing the financial challenges thay face. We are grateful for their contributions and look forward to continued partnership.”
Matthew Power, president of the Maryland self-reliant College and University Association (MICUA), stated the institutions are “proud to be a part of the positive transformation taking place in communities across our city.” The Maryland Hospital Association echoed this sentiment, highlighting the hospitals’ ongoing investments in charity care, schools, and community health.
Beyond the PILOT payments,these institutions already contribute significantly to the city. They currently pay $29 million annually in taxes and fees, and dedicate an additional $19 million to community safety, $7 million to waste management, and $2 million to public right-of-way maintenance.
Collectively, the 14 institutions employ 71,000 people – one in four private sector jobs in Baltimore - generating $57.6 million in local income taxes. In 2024, they invested approximately $652 million in the city, supporting public schools, economic progress, arts, culture, and community health.
Over the next five years, these combined contributions - including PILOT payments, taxes, and fees – are projected to total $481 million to the City’s General Fund. This represents a substantial increase in support, even as peer institutions in other cities with similar PILOT agreements are frequently enough exempt from certain local taxes and fees.
