Hospitals Invest Substantially in their Communities
What You Need to Know:
Hospitals operating as non-profit organizations are exempt from most federal, state, and local taxes as an acknowledgement of the “community benefit” provided by these institutions. Non-profit hospitals are exempt from most federal, state and local taxes to recognize the community benefits they provide.
In the most recent reporting year, Colorado hospitals invested $2.089 billion in their communities, including:
- $863 million in uncompensated services for Medicaid patients
- $399 million in free or reduced-cost health care services
- $54 million in programs addressing health behaviors or risks
- $602 million in programs addressing social determinants of health
- $174 million in other investments that address community-identified needs
In the most recent reporting year, Colorado hospitals provided:
- $3.241 billion in subsidy and support for Medicare and Medicaid patients
- Support for the expansion of Medicaid coverage for an additional 622,000 Coloradans
Colorado Hospital Perspective:
Hospital leadership and governing bodies work closely with their local communities to determine community benefit priorities. This practice should be protected so communities can address their unique needs in partnership with hospitals rather than at the direction of state regulators. Additionally, state assessments of community benefit adequacy should account for hospitals’ broad set of investments in access to care and other health improvements. Finally, reporting requirements should be streamlined and regulatory burden minimized so hospitals are not forced to divert resources away from providing care and investing in community needs.
CHA Contact: Joshua Ewing, CHA vice president of government affairs | [email protected]
Additional Resources
Learn more on CHA’s About Hospital Finances webpage or AHA’s Benefit to Communities webpage.