The study presents an analysis of 3,000 nonprofit hospitals’ tax forms, community benefit reports and Medicare cost reports from 2013 — the most recent year available — to understand the value nonprofit hospitals bring to their communities.
Here are five insights from the report.
1. The estimated tax-revenue forgone in 2013 totaled $6 billion; however, the hospitals contributed approximately $67.4 billion in community health benefits.
2. The researchers counted the value of community benefit from four items — financial assistance and means-tested government programs, community building activities, Medicare shortfall and bad debt as a result of charity care.
3. Of the $67.4 billion of community benefits, $34.7 billion was in the form of financial assistance, not reimbursed Medicaid costs and other costs for means-tested government programs that were not reimbursed.
4. The additional $32.6 billion reflected the other community benefits.
5. The study comes as the tax-exempt status of nonprofit hospitals has gained more skepticism in recent years and as the Internal Revenue Service revoked an undisclosed hospital’s tax-exempt status in August for failure to comply with an ACA rule.
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