Study: Hospital community benefits far exceed federal tax exemption

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 to an analysis by Ernst & Young released today by the AHA. A separate analysis by the AHA shows that tax-exempt hospitals and health systems provided total community benefits equal to 13.7 percent of their expenses, with half of these benefits going to provide financial assistance to patients and absorb losses due to underpayments from Medicaid and other means-tested government programs. “On top of delivering around-the-clock care to all who come to us, hospitals and health systems of all types are providing a wide range of comprehensive benefits, activities and services tailored to meet the specific needs of their patients and communities,” said AHA President and CEO Rick Pollack. “These new reports clearly demonstrate the significant benefit tax-exempt hospitals and health systems provide to their communities.”