A recent report from the American Hospital Association found that non-profit, tax-exempt hospitals spend an average of 11.3 percent of their total annual expenses on community benefits.
AHA and Ernst & Young looked at 571 Form 990 Schedule H documents that represented about 900 non-profit hospitals for the 2009 tax year — or roughly 30 percent of hospitals required to file Schedule H. Starting in 2009, the Internal Revenue Service required hospitals to file Schedule H.
The report defined community benefits as uncompensated care, Medicaid underpayments, community health improvement programs and health research and education. It also counted Medicare shortfalls and unpaid bills from patients who could have received some type of compensated care if an application were completed, which the IRS does not define as community benefits.
Children's hospitals had the highest average of total benefits to the community at 15.2 percent of total expenses. Teaching hospitals averaged 12.4 percent, general medical hospitals averaged 11.7 percent and critical access hospitals averaged 10 percent.
AHA and Ernst & Young looked at 571 Form 990 Schedule H documents that represented about 900 non-profit hospitals for the 2009 tax year — or roughly 30 percent of hospitals required to file Schedule H. Starting in 2009, the Internal Revenue Service required hospitals to file Schedule H.
The report defined community benefits as uncompensated care, Medicaid underpayments, community health improvement programs and health research and education. It also counted Medicare shortfalls and unpaid bills from patients who could have received some type of compensated care if an application were completed, which the IRS does not define as community benefits.
Children's hospitals had the highest average of total benefits to the community at 15.2 percent of total expenses. Teaching hospitals averaged 12.4 percent, general medical hospitals averaged 11.7 percent and critical access hospitals averaged 10 percent.
Related Articles on Hospital Community Benefits:
Virginia Hospitals Contribute $2.3B in Community Benefits in 2010
Minnesota Hospitals Contribute $3.4B in Community Benefits in 2010
Illinois Hospitals Contribute More Than $4.6B in Community Benefits Annually