Tax-Exempt Status

America's hospitals provide compassionate, high quality care 24 hours a day, seven days a week, but their benefit to their communities extends far beyond direct patient care.

Not-for-profit community hospitals do more than care for the injured and infirm; they promote and protect the health and well-being of their communities.

They work to make their communities healthier through numerous community outreach programs, education efforts, health screenings, and various wellness and prevention activities.

Not-for-profit hospitals are distinguished by certain charitable obligations that have evolved over time as they work to meet the changing health needs of their communities.

IRS Form 990 and Schedule H

In August 2008, the Internal Revenue Service (IRS) released final instructions for the redesigned Form 990 and 16 related schedules, including Schedule H–Hospitals, designated solely for tax-exempt hospitals. Except for the required reporting of "facility" information, Schedule H is op...

Related Resources

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Letter
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AHA responds to the US Department of Treasury Office of Tax Policy request for guidance on questions raised by new tax law.
Guides/Reports
In 2015 alone, the most recent year for which data is available, those tax-exempt hospitals participating in the 340B drug savings program provided $51.7B in…
Guides/Reports
EY was commissioned by the American Hospital Association to analyze the federal revenue forgone due to the tax exemption of non-profit hospitals as well as the…
Statistics
This fact sheet provides the definition of underpayment and technical information on how this figure is calculated on a cost basis for Medicare and Medicaid.
Statistics
In 2016, community hospitals have provided more than $38.3 billion in uncompensated care to their patients.