Forbes September 26, 2024
U.S. nonprofit hospitals enjoyed a total annual tax benefit of $37.4 billion, according to our study published in JAMA today. More than 70% of U.S. private hospitals are nonprofit, operating 80% of total inpatient beds. By not levying taxes and providing related benefits, US taxpayers are, in effect, writing these hospitals a big check each year.
Since the establishment of the first non-wartime federal income tax in 1913, nonprofit hospitals have received tax exemptions due to their “charitable” purposes. In the early years, they were indeed charitable organizations, primarily funded by churches and philanthropists, staffed by volunteers, and focused exclusively on caring for disadvantaged patients.
How times have changed. Those charity hospitals have disappeared. Today, many nonprofit hospitals are gigantic...
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