AHA: Nonprofit Hospitals Delivered 10 Times Their Federal Tax Exemption
The American Hospital Association (AHA) announced on September 24 that tax-exempt hospitals and health systems delivered $10 in benefits for every dollar of federal tax exemption in 2020. This was based on findings from an EY report prepared for AHA and represents an increase from $9 in benefits from the prior year despite the pandemic.
According to the report, the estimated federal tax revenue forgone in 2020 due to tax-exempt status was $13.3 billion. “In comparison, the benefit tax-exempt hospitals provided to their communities, as reported on the Form 990 Schedule H, was estimated to be $129 billion, nearly ten times greater than the value of tax revenue forgone.”
“Nonprofit hospitals have a special obligation to those they serve and this new analysis from EY shows these efforts are more than a worthy investment and that improving the health of their communities remains at the heart of the mission of the hospital field,” AHA president and CEO Rick Pollack said in a statement.
