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• 1 2021-11-03T20:30:23+00:00 Should Nonprofit Hospitals Keep Their Tax-Exempt Status? 33 In exchange for providing charitable services, nonprofits do not have to pay taxes. Are they truly earning their privileges from the IRS, though? image_header 2021-11-30T05:25:18+00:00

  Nonprofit Hospitals Do Good by:

  • offering services, some of which carry financial loss, that for-profit hospitals do not.
  • excluding shareholders.
  • conducting Community Health Needs Assessments (CHNAs) every three years.
  • contributing facilities for the education, training, and residency of rising physicians.
  • responding more quickly to emergencies like COVID-19 than for-profit hospitals.
  • partnering with community organizations to help those that are hard to reach.

  
  
  
  However, Nonprofit Hospitals Are Also Guilty of:

  • routinely sending medical bills to patients who would qualify for financial assistance (link to Kaiser article).
  • spending only 60% as much money on charity care than for-profits ($2.30 vs. $3.80 per $100 of total spending).
  • allowing their CEOs to enjoy a 95% pay increase in the decade 2005--2015.
  • awarding their CEOs an average compensation of $3.5m in 2017.
  • taking in 15% more revenue (from 2013--2015) while spending 35% less on charity care.