Publication Date
2010
Abstract
Disputes about tax exemption for hospitals are occurring all over the country. Local tax authorities have revoked tax- exempt status for some hospitals. State governments are considering whether to require minimum amounts of charity care in exchange for tax exemption. Congress is debating whether hospitals should remain a part of the nonprofit sector at all. At the same time, uninsured individuals are suing hospitals for unfair billing and collection practices. Creative accounting and expansive definitions of "free" care have led to a variety of non ideal practices by hospitals in order to balance their bottom line, while maintaining tax-exempt status. This Article argues that the long-standing primary focus on providing individual charity care to meet the community benefit standard for tax exemption is misguided. Instead, it proposes that hospitals should be required to provide population health benefits, and offers a detailed analysis for implementing a new standard for community benefit. Shifting the focus from individual health benefits to population health benefits not only is more conceptually appropriate given the role of the government in providing for the welfare of the population, it has the practical benefit of shifting resources into the underfunded public health arena. The suggestions set forth should result in better, more expansive benefits for communities, clearer guidance for health care institutions and tax authorities,and fewer problematic incentives for tax-exempt hospitals attempting to meet their community benefit obligations.
Recommended Citation
Berg, Jessica
(2010)
"Putting the Community Back into the "Community Benefit" Standard,"
Georgia Law Review: Vol. 44:
No.
2, Article 3.
Available at:
https://digitalcommons.law.uga.edu/glr/vol44/iss2/3