News Summary

• Congress is deeply interested in ensuring that nonprofit hospitals do the right thing for their communities.
• These hospitals have an implicit contract with taxpayers: they advance charitable missions for the community, and in return, taxpayers exempt them from income, property, sales, and other taxes.
• My study shows that total tax savings reached $37.4 billion in 2021, with more than half coming from state and local governments.
• Money borrowed at low, tax-exempt interest rates allows nonprofit hospitals to invest without paying taxes on returns.