News: Tax-exempt hospitals provide $130 billion in benefits to their community, report says

In 2020, tax-exempt hospitals provided approximately $130 billion in total benefits to their surrounding communities, $57 billion of which was used for financial assistance for patients in need, according to a new report from the American Hospital Association (AHA).

In addition to providing assistance for patients in need, healthcare organizations also offered programs and services designed to meet the current and future health needs of their particular patient communities.

The benefits provided amount to 15.5% of not-for-profit hospitals’ total expenses, the report says. This includes “absorbing underpayments from Medicaid and other government programs for the poor.”

Community benefits in 2020, compared with those in 2019, rose by almost $20 billion despite the financial hardships of the COVID-19 pandemic.

Editor’s note: To read the AHA executive summary, click here. To read the full report, click here.