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States Consider Redefining Charity as Tax-Exempt Hospitals Thrive

More than a dozen states have debated or passed legislation to better define charity care, to increase transparency about the benefits that nonprofit hospitals provide or to set minimum financial thresholds for charitable care.

As nonprofit hospitals reap big tax breaks, states scrutinize their required charity spending

POTTSTOWN, Pa. — The public school system here had to scramble in 2018 when the local hospital, newly purchased, was converted to a tax-exempt nonprofit entity. The takeover by Tower

As nonprofit hospitals reap big tax breaks, states scrutinize their required charity spending

States scrutinize nonprofit hospitals charity spending as they reap tax breaks

States scrutinize nonprofit hospitals charity spending as they reap tax breaks
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As nonprofit hospitals reap big tax breaks, states scrutinize their required charity spending

Nonprofit hospitals are expected to provide community benefits in exchange for tax breaks on federal, state and local taxes. But their expenditures have fallen under greater scrutiny – as the recent court case involving Pottstown Hospital demonstrates. The Tower Health facility lost its local property tax break after the Pottstown public school system challenged the hospital's nonprofit status.

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