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- Title
The Impact of IRS Tax Policy on Hospital Community Benefit Activities.
- Authors
Yeager, Valerie A.; Ferdinand, Alva O.; Menachemi, Nir
- Abstract
The Internal Revenue Service (IRS) recently introduced tax code revisions requiring stricter oversight of community benefit activities (CBAs) conducted by tax-exempt, not-for-profit hospitals. We examine the impact of this tax requirement on CBAs among these hospitals relative to for-profit and government hospitals that were not subject to the new policy. We employed a quasi-experimental, difference-in-difference study design using a longitudinal observational approach and used secondary data collected by the American Hospital Association (years 2006-2010 including 20,538 hospital year observations). Findings show a significant increase in the reporting of 7 of the 13 CBAs among tax-exempt, not-for-profit hospitals compared with other hospitals after the policy change. Examples include partnering to conduct community health assessments ( b = 0.035, p = .002) and using capacity assessments to identify unmet community health needs ( b = 0.041, p = .001). Recent tax revisions are associated with increases in reported CBAs among tax-exempt, not-for-profit hospitals. As the debate continues regarding tax exemption status for not-for-profit hospitals, policy makers should expand efforts for enhanced accountability.
- Subjects
AMERICAN Hospital Association; FISCAL policy; TAXATION; COMMUNITIES; HOSPITALS
- Publication
Medical Care Research & Review, 2019, Vol 76, Issue 2, p167
- ISSN
1077-5587
- Publication type
journal article
- DOI
10.1177/1077558717703215