A case in Pottstown, Pa., reflects the growing scrutiny of how much the nation’s nonprofit hospitals spend — and on what — to justify billions in state and federal tax breaks.
from Colorado found that, even after accounting for low Medicaid and Medicare rates, hospitals get enough from private health insurance plans to provide more charity care and community benefits than they do currently and still turn a profit.For many hospitals — after dozens of closures over the past 20 years — “just keeping your doors open is a clear community benefit,” said Melinda Reid Hatton, general counsel for the AHA.
“They’re not requirements,” said Jessica Lucas-Judy, a GAO director. “It’s not clear what a hospital has to do to justify a tax exemption. What’s a sufficient benefit for one hospital may not be a sufficient benefit for another.” The GAO, in a The tax and benefit question has become a bipartisan issue: Democrats criticize what they see as scant charity care, while Republicans wonder why nonprofit hospitals get a tax break.
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