The American Hospital Association and Ernst & Young released a report on February 2, 2012 that examines the community benefit provided by nonprofit hospitals. The study of 571 hospitals and their IRS Form 990 Schedule H submissions found that:
- Nationwide, hospitals spend an average of 11.3 percent of their total expenses on benefits to their communities.
- Direct benefits to patients in financial need, which include free care, financial assistance and spending to fill gaps in Medicaid underpayments, averaged 5.7 percent of total hospital expenses.
- More than 75 percent of participating hospitals and systems have Medicare reimbursement shortfalls -- the Federal government reimburses the hospitals at less than their costs.
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