Tax Exempt Status Is Saving Non-Profit Hospitals About $28 billion Per Year

A new study and analysis by the Kaiser Family Foundation highlights the need for additional scrutiny in non-profit healthcare operations. The authors make the case that heightened scrutiny is necessary to ensure that the community benefits provided by such organizations exceed the forgone tax contributions.

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The study estimates the exempted taxes amount to about $28 billion annually. The piece then goes on to break down from a financial perspective some of the ways these non-profit hospitals contribute back to the community in order to compare non-profit expenditures vs non-profit tax savings as a check on the net impact created by affording this kind of tax-exempt status.

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You can read more about that study and the authors’ conclusions here.