News: Community benefits provided by tax-exempt hospitals total $148.9 billion, report suggests

Tax-exempt hospitals and health systems “delivered $11 in benefits to their communities for every dollar’s worth of federal tax exemption in 2022,” according to the American Hospital Association.

The report examined Medicare hospital cost reports for approximately 2,400 nonprofit acute care hospitals. According to the report, in 2022, the estimated federal tax revenue forgone due to the tax-exempt status of nonprofit hospitals was $13.2 billion.

Additionally, the total benefits to the community provided by nonprofit hospitals in 2022 were estimated to be $148.9 billion. This includes:

• $65.1 billion in financial assistance, unreimbursed Medicaid, and other unreimbursed costs
• $43.4 billion in community health improvement services, health professions education, subsidized health services, research, and cash and in-kind contributions
• $40.4 billion in community building activities, unreimbursed Medicare and bad debt attributable to financial assistance

“Hospitals are the heartbeat of healthier communities,” said AHA President and CEO Rick Pollack in a press release. “This EY report shows they’re not only saving lives 24/7 — they’re also pioneering programs that inspire hope and create a stronger, healthier future for all.” 

Editor’s note: To read the AHA summary, click here. To read the AHA report, click here. To read the AHA press statement, click here.