Nonprofit hospitals were exempt from paying nearly $28 billion in estimated taxes in 2020, according to a report out Tuesday from the Kaiser Family Foundation.
That’s compared to about $20 billion in 2011, and represents an approximately 41% increase over nine years, according to KFF.
For 2020, the value of tax exemptions represented over 43% of net income earned by nonprofit facilities that year, the report found.
Nonprofit hospitals must provide charity care, or free or discounted services to patients unable to afford care, along with other community benefits and investments as part of their tax-exempt status, Healthcare Dive reports.
However, nonprofits have been criticized for receiving tax breaks worth more than the charity and benefits they provide.
A 2022 report from the Lown Institute analyzing 275 community hospitals found that 227 hospitals spent less on charity care and community investment than the value of their tax exemptions. Read more.
