Nonprofit Hospitals Receive $37.4 Billion in Tax Breaks, Study Reveals

A new study shows nonprofit hospitals provide less in charity care compared to the tax benefits they receive, raising questions about their community contributions.

• Nonprofit hospitals in the U.S. received $37.4 billion in tax exemptions in 2021, according to a study by Johns Hopkins and Texas Christian University.
• The study found that these hospitals provided only $15.2 billion in charity care, less than half the value of their tax breaks.
• The breakdown of tax benefits includes $11.5 billion in federal income tax, $9.1 billion in sales tax, and $7.8 billion in property tax exemptions.
• Critics argue that the tax benefits create an uneven playing field, disadvantaging for-profit hospitals and local economies.
• The American Hospital Association contends that nonprofit hospitals offer significant community benefits, including Medicaid shortfalls and medical education.

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