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The Latest Research, Commentary, And News From Health Affairs

Tuesday, April 20, 2021

Dear John,

A new analysis shows that the amount of charity care delivered by
government, nonprofit, and for-profit hospitals does not align with the
tax treatment they receive.

Hospital Tax Benefits Don't Always Align With Charity Care

Government, nonprofit, and for-profit hospitals have different charity
care obligations arising from their respective tax subsidies, tax
exemption, and tax obligations. This tax treatment implies that
government hospitals have the greatest obligation for charity care,
while for-profit hospitals have the least.

In a Health Affairs article

featured in prominent publications like the Washington Post, STAT, and
Bloomberg, Ge Bai and colleagues compared charity care in 2018 across
government, nonprofit, and for-profit hospitals.

They found that, among Medicare-certified general acute care hospitals,
the nonprofit hospitals provided the least aggregated charity care. For
every $100 of expense incurred, nonprofit hospitals spent less on
charity care ($2.3) than for-profit hospitals ($3.8) or government
hospitals ($4.1). In nearly half, 46 percent, of the areas with all
hospital types, government or nonprofit hospitals contributed a lower
proportion of expenses to charity care than for-profit hospitals.

All together, these results suggest that government, nonprofit, and
for-profit hospitals' charity care provision relative to their total
expenses did not align with their charity care obligations arising from
their tax treatment.

Check out our April 2021 issue
for content about the
ACA, spending, and more.

Today on Health Affairs Blog, Nancy Krieger, Rhea Boyd, Fernando De
Maio, and Aletha Maybank discuss the ways the world's leading
gatekeeper medical journals produce ignorance about racism and health
.
Additionally, Rama A. Salhi and coauthors argue that lessons learned
from telehealth's rapid expansion

during the COVID-19 pandemic can help ensure that its future use will be
guided by equity considerations.

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today .

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ACA Closed Health Coverage Gaps For Pregnant Women. There's Still A
Long Way To Go

Listen to Editor-in-Chief Alan Weil interview Emily Johnston from the
Health Policy Center at the Urban Institute. Johnston shares insights
from her latest research on women's loss of Medicaid in the weeks
before or after pregnancy.

Listen Here

Your Daily Digest

Analysis Suggests Government And Nonprofit Hospitals' Charity Care Is
Not Aligned With Their Favorable Tax Treatment

Ge Bai, Hossein Zare, Matthew D. Eisenberg, Daniel Polsky, and Gerard F.
Anderson

Medicine's Privileged Gatekeepers: Producing Harmful Ignorance About
Racism And Health

Nancy Krieger, Rhea Boyd, Fernando De Maio, and Aletha Maybank

No Patient Left Behind: Considering Equitable Distribution Of Telehealth

Rama A. Salhi, Mahshid Abir, and Bisan A. Salhi

Podcast: ACA Closed Health Coverage Gaps For Pregnant Women. There's
Still A Long Way To Go

Alan Weil and Emily M. Johnston

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