Location

Northwestern College, Rowenhorst Student Center

Description

Whether to grant lucrative hospitals tax-exempt status is a controversial legal topic. Under the current law, non-profits must provide community benefit, a specific type of charitable giving, to maintain their tax-exempt status. The goal of this paper is to argue that hospitals’ community benefit requirement should be strengthened and further specified. I plan to show that the non-profit hospitals can afford charitable contributions to surrounding communities, but such contributions are a small share of their expenditures. I propose two easy steps can be made to make the community benefit requirement meaningful. First, the Community Needs Assessment should be done every three years with an implementation progress report being made every year. This will keep hospitals accountable in their goals set forth by the Assessment. Next, there needs to be a clear basis for what classifies as a community benefit. With these two moves, hospitals will have less flexibility to abuse the guidelines set forth now and make meaningful contributions to surrounding communities.

Share

COinS
 
Apr 12th, 11:00 AM Apr 12th, 1:00 PM

How to Help Non-Profit Hospitals Serve Better

Northwestern College, Rowenhorst Student Center

Whether to grant lucrative hospitals tax-exempt status is a controversial legal topic. Under the current law, non-profits must provide community benefit, a specific type of charitable giving, to maintain their tax-exempt status. The goal of this paper is to argue that hospitals’ community benefit requirement should be strengthened and further specified. I plan to show that the non-profit hospitals can afford charitable contributions to surrounding communities, but such contributions are a small share of their expenditures. I propose two easy steps can be made to make the community benefit requirement meaningful. First, the Community Needs Assessment should be done every three years with an implementation progress report being made every year. This will keep hospitals accountable in their goals set forth by the Assessment. Next, there needs to be a clear basis for what classifies as a community benefit. With these two moves, hospitals will have less flexibility to abuse the guidelines set forth now and make meaningful contributions to surrounding communities.

 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.