Study: Hospitals Get More Than They Give

On the one hand, you?ve got Chicago-area not-for-profit hospitals receiving an estimated $326 million in tax breaks while only spending somewhere in the neighborhood of $105 million in free or deeply discounted charity care, according to a study by the Center for Tax and Budget Accountability. On the other hand, hospital trade groups disagree with study?s finding, saying it inflates the value of the tax breaks. By focusing too much on charity care, they argue, the study paints an incomplete picture of what hospitals do to merit the tax benefits they get.

The debate is being covered by the Chicago Sun-Times. Critics of the non-profit hospitals want to see them take on more charity care to make up for the perceived discrepancies. “When you look at the amount of charity care nonprofit hospitals are providing,” Illinois Attorney General Lisa Madigan said, “it clearly doesn’t measure up to the benefit they’re receiving.”

Hospital trade groups like The Illinois Hospital Association allege that the study was paid for by somewhat dirty money. The grant that paid for the study was provided by The Services Employees International Union. “The Service Employees have simply been trying to do everything they can to undermine the good work hospitals are doing and trying to use state and local government as leverage to get the labor-management playing field imbalanced in their favor,” said Howard Peters, senior vice president of the Illinois Hospital Association.

You can read more about this story at Hospitals get more than they give: study.