Connecticut Not-for-Profit Hospitals Dedicate Higher Percentage of Expenses to Community Benefits than Region and Nation (report here); Value to Communities Far Exceeds Value of Tax-Exempt Status (report here)
HARTFORD – Two new reports by the international accounting firm EY (also known as Ernst and Young) detail the value of community benefits provided by Connecticut not-for-profit hospitals.
Hospital “community benefits” refers to the initiatives, activities, and investments undertaken by tax-exempt hospitals to improve the health and well-being of the communities they serve. Connecticut hospitals provide wide-ranging community benefits focused on addressing root-cause drivers of health outcomes and improving health equity. These benefits include financial assistance, medical training, research to formulate new treatments, community health programs, and absorbing underpayments from Medicaid.
The EY reports, released by the Connecticut Hospital Association (CHA) ahead of Community Benefit Advocacy Day at the state Capitol, which takes place on Tuesday, May 13, detail two key findings related to community benefits in Connecticut:
- Connecticut hospitals dedicate a higher percentage of expenses to providing community benefits compared to other New England states and the nation (see analysis here)
- The value of community benefits provided by Connecticut not-for-profit hospitals exceeds the value of their tax-exempt status (see analysis here)
Community Benefit Advocacy Day takes place from 10:00 a.m.-2:00 p.m. on Tuesday, May 13, in the Nathan Hale Statue area of the Capitol. During this expo-style event, local hospitals and their community partners will showcase joint programs and initiatives they have developed and deployed together.
“Connecticut hospitals are doing all they can to invest in community benefits, notably exceeding the percentage spent on such benefits by hospitals in other New England states and across the nation,” said Jennifer Jackson, CEO, CHA. “Connecticut hospitals’ investments in community benefits also outpace the value of state and federal tax exemptions provided to not-for-profit hospitals in recognition of their contributions to the health and well-being of the communities they serve. For every dollar’s worth of tax exemption, Connecticut hospitals delivered double the value in benefits to their communities.”
Connecticut not-for-profit hospitals’ investments in their communities made up 11.6% to 13.5% of hospital total expenses between 2019 to 2022, according to one EY analysis. This is higher than the total community benefit percentage for tax-exempt hospitals in New England (8.8% to 10.6%) and across the U.S. (10.3% to 11.3%) in the respective years.
As part of their charitable missions, the 23 tax-exempt hospitals in Connecticut provided community benefits totaling more than $1.6 billion (11.6% of total expenses) in 2021 and nearly $1.8 billion in 2022 (11.8% of total expenses). Through their tax-exempt status, the 23 hospitals received tax exemptions valued at $719 million and $759 million in 2021 and 2022, respectively. Overall, EY reports that the community benefits Connecticut tax-exempt hospitals provided exceeded the value of their tax exemptions by $884 million in 2021 and $1 billion in 2022.
“Connecticut hospitals are cornerstones of their communities, and the benefits they provide are impactful in improving public health and advancing health equity. However, there are barriers that make this work ever more challenging,” said Jackson. “Low Medicaid reimbursement rates limit access, drive up patient costs, and strain healthcare providers — while communities struggle with chronic disease and generational health challenges. Hospitals are working with partners to advocate for Medicaid reforms that not only raise reimbursement rates but also invest in strengthening and expanding multi-sector health partnerships focused on preventing chronic disease and improving community well-being. Supporting Medicaid redesign supports growing and strengthening the community benefit work hospitals and their local partners are engaged in every day to improve lives and create healthier communities.”
Access the EY reports and CHA summary below:
- Caring for Our Communities: The Value of Community Benefits Provided by Connecticut Hospitals – CHA Report Summary
- Community Benefits Provided by Tax-Exempt Hospitals in Connecticut (2019-2022) EY Analysis
- The Value of Tax Exemption and Community Benefits Among Tax-Exempt Hospitals in Connecticut (2021 to 2022) EY Analysis
Learn more about the types of community benefits provided by Connecticut hospitals here, or stop by tomorrow’s Community Benefit Advocacy Day from 10:00 a.m.-2:00 p.m. in the state Capitol (by the Nathan Hale statue) to meet representatives from local hospitals and their community partners.
