Study: Hospital community benefits exceed federal tax exemption 11 to 1

As Congress turns to tax reform, a new analysis prepared by Ernst & Young for the AHA finds that hospitals’ and health systems’ community benefit activities outweigh the value of their federal tax exemption by a factor of 11 to one. According to the report, non-profit hospitals in 2013, the most recent year for which data is available, were exempt from an estimated $6 billion in federal taxes and provided an estimated $67.4 billion in community benefits. “Advancing the health and wellness of our patients and the communities we serve is a foundational mission for our nation’s hospitals,” said AHA President and CEO Rick Pollack. “Today, hospitals of all kinds – urban and rural, large and small – are demonstrating the value they provide and solidifying their commitment to making their communities healthier through strengthened community partnerships, health and wellness programs, and outreach activities designed to combat identified community needs.” The report is available at www.aha.org/taxexempt.