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 2023 Hospital Community Benefit Accountability report from the Colorado Department of Health Care Policy and Financing, hospitals are credited with directly investing $965 million in their communities, including:

  • $239 million in free or reduced-cost health care services
  • $533 million in programs addressing health behaviors or risks
  • $76 million in programs addressing social determinants of health
  • $117 million in other investments that address community-identified needs

Additionally, Colorado hospitals contribute significantly to the provision of care for beneficiaries of low-income coverage programs and those unable to pay for services.

  • In 2021, according to the Colorado Healthcare Affordability and Sustainability Enterprise annual report, Colorado hospitals provided:
    • $2.8 billion in subsidy and support for Medicare and Medicaid patients (a 28% increase over the previous five years)
    • $263 million in charity care (a 79% increase over the previous five years)
    • Support for Medicaid coverage and expansion for an additional 668,000 Coloradans (a 34% increase from 2020) through the provider fee program
Hospitals are credited with directly investing $965 million in their communities
Hospitals Invest Substantially in their Communities

Additional Resources

Learn more on CHA’s About Hospital Finances webpage or AHA’s Benefit to Communities webpage.