Question  What is the total tax benefit received by US nonprofit hospitals?

Findings  Analyzing data from Medicare Cost Reports, a total of 2927 US nonprofit hospitals received a $37.4 billion total tax benefit in 2021. Tax benefit varies widely across states and is highly concentrated among a small number of hospitals. More than half of the total tax benefit was received at the state and local levels.

Meaning  Policy efforts to strengthen nonprofit hospitals’ taxpayer accountability are likely more effective when pursued at the local level. A standardized estimation road map is provided for various stakeholders to value tax benefit for valuation and reporting purposes.

Plummer E, Socal MP, Bai G. Estimation of Tax Benefit of US Nonprofit Hospitals. JAMA. Published online September 26, 2024. doi:10.1001/jama.2024.13413