Tax-exempt hospitals and health systems provided over $110 billion in community benefits in fiscal year 2019, almost nine 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 13.9% of their expenses, with over 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.
“For the past two and a half years, our nation has seen firsthand how America’s hospitals and health systems have cared for their patients and provided essential services to their communities in times of an unprecedented public health crisis,” said AHA President and CEO Rick Pollack. “In addition to providing critical care, hospitals and health systems of all sizes, types and locations deliver a wide range of tailored benefits, activities, services, programs and research to meet the varied health needs of those they serve. Today’s analysis shows that advancing health in their communities remains the North Star for America’s hospitals and health systems.”
Learn more about how hospitals benefit their communities here.