An average of 6.1 percent of total expenses for the nearly 1,000 tax-exempt hospitals analyzed went toward charity care and losses from Medicaid and other means-tested government programs. Additionally, in 2011, 70 percent of the hospitals analyzed reported bad debt expense attributable to charity care, at an average of 1 percent of total expenses.
Furthermore, in 2011, Ernst & Young found tax-exempt hospital systems and individual hospitals spent an average of 0.15 percent of their total expenses on community building activities, such as hospital employee participation on state boards of health and donations to programs that address community health problems. General medical hospitals spent the most (0.19 percent of total expenditures) on community building.
More articles on hospital spending:
Healthcare spending around the world: 18 statistics
We spend HOW much on hospital bureaucracy? Why pay-for-performance will only make it worse
Why U.S. hospital administrative costs are among the highest in the world: 7 things to know
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