Tax-exempt Status
Infographic Myth vs. Fact: Nonprofit Hospitals’ Tax-Exempt Status
Nonprofit hospitals are exempt from federal and some state and local taxes. Therefore, in addition to providing that 24/7 care, they must meet the Internal Revenue Service (IRS) Community Benefit Standard and publicly and extensively report the range of benefits and services they provide to their…
A tax-exempt organization must file an annual information return or notice with the IRS, unless an exception applies. Form 990 is the IRS' primary tool for gathering information about tax-exempt organizations, educating organizations about tax law requirements and promoting compliance.…
Nonprofit hospitals have special obligations to their communities in exchange for being tax-exempt.
An EY report prepared for the AHA shows that tax-exempt hospitals and health systems delivered $10 in benefits to their communities for every dollar’s worth of federal tax exemption in 2020, the most recent year for which comprehensive data is available. It represents an increase from $9 in…
A new analysis by the international accounting firm EY (also known as Ernst and Young) for the AHA shows that tax-exempt hospitals and health systems delivered $10 in benefits to their communities for every dollar’s worth of federal tax exemption in 2020, the most recent year for which…
In 2020, the estimated tax revenue forgone due to the tax-exempt status of nonprofit hospitals is $13.2 billion. In comparison, the benefit tax-exempt hospitals provided to their communities, as reported on the Form 990 Schedule H, is estimated to be $129 billion, almost 10 times greater than the…
An op-ed published July 9 in Modern Healthcare written by AHA President and CEO Rick Pollack and Catholic Health Association President and CEO Sr. Mary Haddad discusses why nonprofit hospitals need positive margins.
The Federal Trade Commission April 23 voted 3-2 to issue a final rule that would ban as an unfair method of competition contractual terms that prohibit workers from pursuing certain employment after their contract with an employer ends.
Learn why it's reckless and wrong to allege that hospitals are deliberately squeezing their charity care spending to maintain financial viability.