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Not-for-Profit Hospitals' Community Spending Detailed
A study sponsored by the American Hospital Association shows that not-for-profit hospitals average more than 11% of total expenses on benefits to their communities.
Rich Umdenstock is so right when he suggests that each community is better than the IRS in determining how much not-for-profit hospitals actually benefit them. A recent Ernst & Young survey shows that most of what IRS counts as community benefit has little or nothing to do with benefiting any specific community, including health research and education, filling gaps in Medicare "underpayments", and even charity care. Generally, none of these activities are the responsibility of a hospital's community benefit program, or are identified with any specific community improvement.