A recent analysis commissioned by the American Hospital Association counters the criticism of non-profit hospitals and health systems’ tax exempt status, demonstrating that health institutions are true anchors in their communities that return $10 in benefit for every $1 in tax exemption.
The research reported by the international accounting firm EY (also known as Ernst and Young) showed that, in 2020, tax-exempt hospitals and health systems provided an estimated $129 billion in benefit to their communities, or about 10 times the value of their $13.2 billion estimated tax exemption.
“In addition to exceptional health care that is affordable and accessible, health systems do so much more in trying to ensure that all of the communities they serve have the opportunity to reach their fullest potential and live their best lives,” said Dr. Alex Garza, SSM Health’s Chief Community Health Officer.
SSM Health, for example, is involved in economic development, helping to create jobs in areas that traditionally have had fewer opportunities for their residents. In addition, SSM Health is investing in the communities’ future in other ways, such as relying heavily in solar energy to reduce our carbon footprint and planting trees to improve the environment for generations to come.
“Non-profit health systems, particularly SSM Health, have always had a mission to provide care to the community, especially to those most in need,” Garza said. “This report confirms what we already knew – that we do much more than care for our patients. We help weave the fabric of our communities together and are dedicated advocates for our neighbors.”
