Tax-exempt hospitals provided $95B in total community benefits in 2016, analysis finds

In 2016, nonprofit hospitals were exempt from $9 billion in federal taxes due to their tax-exempt status, and provided $95 billion in total benefits to their communities, according to a new analysis.

The analysis — prepared by Ernst & Young and released May 22 by the American Hospital Association — highlights estimates for 2016, the most recent year for which nonprofit hospitals' community benefit information is available.

The estimates were based on the tax filings of about 3,000 nonprofit general hospitals.

The American Hospital Association said the analysis includes community benefits such as programs and activities to improve neighborhood and population health. The deductibility of charitable contributions to nonprofit hospitals was not factored in.

Another analysis released May 22 by the American Hospital Association, also based on hospital tax filings, found that nonprofit general hospitals reported total community benefits of 13.7 percent of their total hospital expenses. Association representatives said half of the total hospital expenses were for financial assistance provided to patients and absorbing losses from Medicaid and other means-tested government program underpayments.

Learn more abut the analyses and the methodology used for them here.


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