Note: Hospital Tax-Exemption and the Community Benefit Standard: Considerations for Future Policymaking Skip over navigation
LexisNexis® Browse Law Reviews and Treatises
Skip over navigation
Sign in with your® ID to access the full text of this article.
Order the full text of this article if you do not have a® ID.
US $22.00 (+ tax)

Copyright (c) 2010 Trustees of Indiana University
Indiana Health Law Review

Note: Hospital Tax-Exemption and the Community Benefit Standard: Considerations for Future Policymaking

2010 / 2011

Indiana Health Law Review

8 Ind. Health L. Rev. 365


Bobby A. Courtney*


I. Introduction

The Boston Globe recently reported that in 2007, ten of Massachusetts' leading hospital companies received approximately $ 638 million in tax incentives and state borrowing discounts, exceeding the value of "community benefits" (i.e., indigent care and other charity work) they provided by more than $ 264 million that same year. 1 Without further analysis, this discrepancy appears at odds with a general principle of nonprofit tax-exemption; specifically, that "the government's loss of tax revenues is offset by its relief from financial burdens that it would otherwise have to meet with appropriations from public funds, and by the benefits resulting from the promotion of general welfare." 2 However, during this same year the largest of these companies provided care to Medicare patients at a loss of approximately $ 400 million, care to Medicaid patients at a loss of nearly $ 145 million, and care to self-pay patients at a loss of over $ 40 million. 3 Additionally, the company continues to invest significant resources in community- based partnerships aimed at addressing health disparities; programs that improve the health of women through emergency shelter, social support, and educational opportunities; community workforce development programs; and services for homeless adults and veterans. 4 Should these unreimbursed costs and other community services be considered as part of the tax-exemption calculus? If so, to what extent? Certainly not limited to Massachusetts, this question continues to spur significant debate over the extent to which nonprofit hospitals "deserve" their tax-exempt status.

A. The Issue

The ...
If you are interested in obtaining a® ID and Password, please contact us at 1-(800)-227-4908 or visit us at
Search Documents
eg., Environmental Insurance Coverage Under the Comprehensive General Liability Policy

Lexis® Web - The only search engine that delivers free web content specifically from legal sites validated by LexisNexis® attorney editors and includes tools for faster research and more relevant results.

LexisNexis Store
Research Now - Go to
Connect the Dots - Free 1 hour webcast
Share. Network. Discover. - Go to LexisNexis Communities