Nonprofit hospitals have seen substantial growth in operating profits and cash reserves, but aren’t shelling out more money for charity care, according to a new study.
The mean operating profits for nonprofit hospitals grew from $43 million in 2012 to $58.6 million by 2019, while mean cash reserve balances increased from $133.3 million to $224.3 million, researchers found.
However, spending on charity care actually dropped during that time period, from $6.7 million in 2012 to $6.4 million. Nonprofits are required to provide charity care and other community benefits in exchange for their tax-exempt status, Healthcare Dive reports. Read more.
