In 2010, California non-profit hospitals received $1.84 billion more in government subsidies and other tax-exempt benefits than in charity care provided, according to a report from the Institute for Health & Socio-Economic Policy (pdf), which is the research arm of the California Nurses Association/National Nurses United.
IHSP looked at the self-reported charity care data and tax exemption data of 196 California non-profit hospitals. It found that California non-profits provided roughly $1.43 billion in charity care, but government subsidies — such as federal income taxes, state income taxes, sales taxes and tax-exempt bonds — amounted to $3.27 billion.
The report also found that California hospitals set new records in terms of profit. State non-profit hospitals posted a cumulative net income of $52.9 billion. The hospitals with the largest profit totals included San Francisco-based California Pacific Medical Center, Palo Alto-based Stanford University Hospital, Los Angeles-based Cedars-Sinai Medical Center and Walnut Creek-based John Muir Medical Center.
Oakland, Calif.-based Kaiser Hospitals and Sacramento-based Sutter Health, two of the largest systems in the state, were the most profitable health systems. They also had the highest total amount of exemptions in excess of charity care provided at $549.4 million and $288.6 million, respectively.
The report came out as a California Senate committee began questioning whether non-profit hospitals are deserving of their tax-exempt status, considering many California non-profits have loose rules for how much charity care they provide.
IHSP looked at the self-reported charity care data and tax exemption data of 196 California non-profit hospitals. It found that California non-profits provided roughly $1.43 billion in charity care, but government subsidies — such as federal income taxes, state income taxes, sales taxes and tax-exempt bonds — amounted to $3.27 billion.
The report also found that California hospitals set new records in terms of profit. State non-profit hospitals posted a cumulative net income of $52.9 billion. The hospitals with the largest profit totals included San Francisco-based California Pacific Medical Center, Palo Alto-based Stanford University Hospital, Los Angeles-based Cedars-Sinai Medical Center and Walnut Creek-based John Muir Medical Center.
Oakland, Calif.-based Kaiser Hospitals and Sacramento-based Sutter Health, two of the largest systems in the state, were the most profitable health systems. They also had the highest total amount of exemptions in excess of charity care provided at $549.4 million and $288.6 million, respectively.
The report came out as a California Senate committee began questioning whether non-profit hospitals are deserving of their tax-exempt status, considering many California non-profits have loose rules for how much charity care they provide.
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