Tax-exempt Status

Improving the health of their communities is at the heart of every hospital’s mission. For example, tax-exempt hospitals annually demonstrate accountability to the communities they serve by reporting to IRS on the benefits they provide to their community using the IRS Form 990 Schedule H and making…

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 community benefits they provide. This study presents estimates for 2016, the most recent year for which community benefit information is…

Tax-exempt hospitals both meet and exceed any requirements and expectations that attach to the privilege of tax exemption, AHA General Counsel and Secretary Melinda Hatton testified today at a House Ways and Means Subcommittee on Oversight hearing on tax-exempt hospitals and the community…

Tax-exempt hospitals have special obligations to their communities in exchange for that privilege. They report the amounts they spend on community benefits yearly and conduct a community needs assessment at least every three years. There is no doubt that these hospitals both meet and exceed any…

Several House subcommittees April 26 will hold hearings on a variety of issues that affect hospitals and health systems, including transparency, site-neutral payment policies, tax-exempt status, workforce shortages and the Provider Relief Fund.

Every single hospital and health system provides benefits to their communities that far outstrip any other sector in health care. Some hospitals are exempt from federal and some state and local taxes. Hospitals more than earn their tax exemption, in part because of the immense benefits they provide…

Tax-exempt hospitals provided $9 of benefit for every $1 of tax exemption in 2019, the most recent year for which comprehensive data is available, writes AHA President and CEO Rick Pollack.

The international firm EY has looked at how the benefits tax-exempt hospitals provide stack up against their federal tax exemption. Last year’s report showed the spread was 9 to 1 – for every $1 of exemption, reporting hospitals provided $9 of benefit to the community.

A tax-exempt organization must file an annual information return or notice with the IRS, unless an exception applies. Form 990 is the IRS' primary tool for gathering information about tax-exempt organizations, educating organizations about tax law requirements and promoting compliance.…

The Inflation Reduction Act (H.R.5376) signed into law Aug. 16, 2022, (Public Law 117-169) makes tax incentives available to hospitals, including tax-exempt hospitals, for energy efficient construction and clean energy vehicles.