Medscape September 30, 2024
Nonprofit hospitals in the United States received tax breaks worth $37.4 billion in 2021, subsidized partly by property taxes in surrounding communities, a new JAMA study reported.
The findings are likely to renew the long-running debate over whether some large, consolidated health systems including medical groups and hospitals should continue to retain their nonprofit status.
Researchers used Medicare cost reports to scrutinize the finances of nearly 3000 US nonprofit hospitals and quantify the benefits to hospitals of not paying different kinds of taxes on sales, state income, federal income, bond financing, and charitable contributions.
Not paying federal income tax, for example, accounted for $11.5 billion in nonprofit hospital tax benefits. Foregone property tax totaling $7.8 billion, or 21%, of the...
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