Examining Oversight Of Tax-Exempt Not-For-Profit Hospitals

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Not-For-Profit Hospitals

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The Detroit Free Presson Wednesday in the second of a two-part series about charity careexamined oversight of not-for-profit hospitals' tax-exempt status inMichigan. According to a review by the Free Press, "Whileno one questions the key role Michigan hospitals play in theircommunities, it's virtually impossible" to determine which facilitiesprovide the greatest amount of no-cost care or how much they benefitfrom tax breaks. The review found that different hospitals usedifferent methods of determining what is considered charity care and nostate agency routinely measures the amount hospitals in the statereceive in tax breaks.

The Free Press reports thatMichigan "remains a state with little scrutiny of charity care spendingby its nonprofit hospitals as calls increase for greater accountabilityin a dozen states." Sen. Chuck Grassley (R-Iowa) since 2004 has beenpushing for stricter restrictions on hospitals' tax-exempt status,according to the Free Press (Anstett/Bailey, Detroit Free Press, 10/24).

Reprinted with permission from kaisernetwork.org. Youcan view the entire Kaiser DailyHealth Policy Report, search the archives, and sign up for email deliveryat kaisernetwork.org/email. The Kaiser Daily HealthPolicy Report is published for kaisernetwork.org, a free service of The HenryJ. Kaiser Family Foundation.

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