At House hearing, AHA says tax-exempt hospital meet and exceed requirements of tax exemption

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 benefit standard.  
  
In 2019, which is the most recent tax year that comprehensive information is available, tax-exempt hospitals devoted nearly 14% of their total expenses to community benefit programs. In addition, a report by the international accounting firm EY demonstrated that the return to taxpayers for hospitals’ federal tax exemption is 9-to-1.  
  
“That means for every one dollar of tax exemption, taxpayers receive $9 of community benefits,” Hatton said. “That is a remarkable return by any standard.”
 
Hatton spoke about how one of the greatest accomplishments of the community benefit standard is the flexibility it gives to hospitals to meet the individual needs of the communities they serve.  
  
She cited examples from HonorHealth in Scottsdale, Ariz., which has programs that provide early childhood education, senior day care, and trauma and deployment programs for military professionals, as well as St. Joseph’s Health in Paterson, N.J., which works with a wide range of community organizations on education programs on autism, obesity, diabetes and asthma.  
  
“Hospitals and health systems do more than any other sector of health care to support the communities they serve and more than enough to support their tax-exempt status,” Hatton said.