Study: Hospital community benefits far exceed federal tax exemption for fiscal year 2019

Jun 06, 2022 - 03:07 PM
study-racial-gap

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. 

Related News Articles

Headline
Blog: Four Reasons the HHS Provider Tax Study Misses the Mark
A new AHA blog examines a Department of Health and Human Services issue brief that claims Medicaid hospital provider taxes increase employer-sponsored…
Blog
HHS Analysis Does Not Establish a Causal Link Between Medicaid Provider Taxes and Commercial Premiums
Public
A recent issue brief from the Department of Health and Human Services asserts that Medicaid hospital provider taxes raise employer-sponsored insurance premiums…
Headline
Court strikes ‘medically frail’ definition in Medicaid community engagement requirements 
The U.S. District Court for the District of Massachusetts yesterday ruled in favor of 25 states and the District of Columbia to vacate the Centers for Medicare…
Headline
Study: Extending Medicaid coverage 12 months increased use of postpartum care for mothers with pregnancy complications 
Extending Medicaid coverage by 12 months following childbirth increased use of postpartum care among mothers with pregnancy complications such as diabetes and…
Headline
HHS clarifies when state Medicaid agencies can use patient SUD records to verify exemption from community engagement requirements
The Department of Health and Human Services Office for Civil Rights released new guidance on statutory and regulatory requirements under 42 CFR Part 2, which…
Headline
CMS launches outcomes-driven quality measurement initiative for states 
The Centers for Medicare & Medicaid Services Sept. 25 announced the launch of a new initiative measuring quality in Medicaid and the Children’s Health…