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.

Related News Articles

Headline
The authors fail to account for the full range of costs nonprofit hospitals incur, and neglect to acknowledge the plethora of other benefits non-profit…
Blog
A new research letter on charity care published in JAMA Internal Medicine is misleading at best.   First, the authors fail to account for the full range…
Headline
Few — if any — can say they benefit the community as much as America’s hospitals and health systems.  On top of delivering around-the-clock care to all…
Headline
Tax-exempt hospitals and health systems provided $95 billion in community benefits in 2016, almost 11 times the value of their federal tax exemption, according…
Headline
The Internal Revenue Service yesterday issued interim guidance regarding the treatment of qualified transportation fringe benefit expenses paid or incurred…
Blog
Modern Healthcare's Flaws in reporting create knowledge vacuum regarding community benefits (December 1, 2018) fails to provide a cohesive view of the…