The nation's nearly 3,000 nonprofit hospitals collected billions in tax breaks but paid less than half that amount in charity care to low-income patients. In exchange for not paying income, property, sales or other taxes, these hospitals are expected to provide free or reduced-cost care to low-income patients as well as other community benefits. A new study estimates the enormous size of this collective tax break. The study reported the nation's nearly 3,000 nonprofit hospitals were spared $37.4 billion in federal, state and local taxes in 2021, a reflection of how lucrative these tax benefits can be for medical centers. Medicare filings show hospitals paid out $15.2 billion in charity care in 2021.
