Community benefit expenses for tax-exempt hospitals totaled more than $100 billion in 2017, according to a new report from the American Hospital Association.
Nonprofit hospitals are exempt from taxes. In return, they provide community benefits in the form of charity care, population health programs and underwriting medical research and education, among other benefits.
The AHA's new report examines hospitals' community benefit information for the 2017 tax year, the year for which the most recent information is available. The AHA's review found on average, financial assistance for unreimbursed services reflected 6.4 percent of hospitals' total expenses, with total benefits to the community reflected 13.8 percent of expenses.
"This report presents the financial costs incurred by tax-exempt hospitals and health systems in providing community benefits," the report states. "IRS requires such hospitals to report community benefit as a percent of hospital expenses. These numbers alone, however, do not measure the value of the overall tangible and intangible benefits hospitals provide by improving their communities' health and economic well-being."
To read the full report, click here.