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Nonprofit hospitals under growing scrutiny over how they justify billions in tax breaks

And an April report by the Lown Institute, a health care think tank, said more than 1,350 nonprofit hospitals have “fair share” deficits, meaning the value of their community investments fails to equal the value of their tax breaks.

“With so many Americans struggling with medical debt and access to care, the need for hospitals to give back as much as they take grows stronger every day,” said Vikas Saini, president of the institute.

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How some cities are buying medical debt

60% of U.S. hospitals are nonprofit hospitals. The non-partisan Lown Institute estimates those institutions receive $30 billion in tax breaks each year. The institute recently evaluated nonprofit hospitals for their community benefits. They found that three-quarters received more in tax breaks than the hospitals spent on charity care or other community benefits. More

Lown Institute: St. Luke’s No. 1 in Pennsylvania for charitable giving

According to Lown research, St. Luke’s University Hospital spent $16,364,000 more on charity care and community investments than the estimated value of its tax exemption. The other five St. Luke’s hospitals’ surpluses totaled nearly $12 million: Upper Bucks Campus ($5,810,000) Miners Campus ($2,994,000)Anderson Campus ($1,589,000) Geisinger St. Luke’s Hospital ($754,000) Monroe Campus ($629,000). More

Do Mass. hospitals give more than they get in tax breaks? One nonprofit says ‘nope.’

"It’s an open secret that not all spending hospitals can claim as community benefits are actually meaningful for community health," the nonprofit's president, Vikas Saini, and policy analyst, Judith Garber, wrote. "The broad definition of community benefit — one of many loopholes in the U.S. tax code — allows hospitals to include spending on items that don’t directly address community health needs. That’s why we focused on the spending that matters most for local communities, some of which are losing tens of millions of dollars in property tax revenue to support nonprofit hospitals." More

‘Houston, We Have A Problem’: Abandoning Their Mission, Nonprofit Hospitals Have Veered Far Off Course

According to a new report by the Lown Institute, close to 80% of more than 1,700 nonprofit hospitals studied “spent less on charity care and community investment than the estimated value of their tax breaks.” The report also found that this so-called “fair share” deficit, which was $14.2 billion in 2020, was “enough to erase the medical debts of 18 million Americans or rescue the finances of more than 600 rural hospitals at risk of closure.” More