Business
Study reveals gap between hospital tax breaks and charity care
NEWS IN BRIEF — Posted June 19, 2006
A study of 21 nonprofit hospitals in the Chicago area found that the hospitals only spend $1 on charity care for every $3 they receive in tax breaks.
The study, released May 30 by the Chicago-based Center for Tax and Budget Accountability, concluded that the hospitals receive $325.6 million in annual tax exemptions and spend $105.2 million on charity care.
In a written statement, the Illinois Hospital Assn. and Metropolitan Chicago Healthcare Council questioned the findings, saying that the aggregate value of the hospitals' community benefits amounts to $1.6 billion.
The hospital groups said the data were incomplete and the methodology was flawed, and the report was "politically motivated and bought and paid for by the Service Employees International Union, which is engaged in a campaign to discredit hospitals as it tries to organize workers."
The center acknowledged its report was paid for by the SEIU, and that the union has a representative on its board, but said its findings were independent.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/06/19/bibf0619.htm.
