Community benefit activities by hospitals outweigh federal tax exemption by 11 to 1

As the administration and Congress turn to tax reform, not-for-profit community hospitals do more than care for the injured and infirm; they promote and protect the health and well-being of their communities.

Hospitals work to make their communities healthier through numerous outreach programs, education efforts, health screenings, and various wellness and prevention activities. Not-for-profit hospitals are distinguished by certain charitable obligations that have evolved over time as they work to meet the changing health needs of their communities.

A new tax exemption report prepared by Ernst & Young for the American Hospital Association (AHA) finds that hospitals’ and health systems’ community benefit activities outweigh the value of their federal tax exemption for every dollar invested in hospitals and health systems by means of their federal tax exemption they deliver $11 in benefits back to their communities.