Many Wisconsin Nonprofit Hospitals Spend Less on Charity Care Than They Receive in Tax Breaks
By Consumers for Quality Care, on June 5, 2024
According to UpNorthNews, many nonprofit hospitals in Wisconsin continue to see their profits increase and their cash reserves grow but are spending less on charity care and community investments than what they receive in tax breaks.
Though nonprofit hospitals enjoyed over $28 billion in tax exemptions nationally in 2020, they have contributed to the country’s growing medical debt crisis, engaging in predatory debt collection practices, suing consumers over unpaid medical bills, and neglecting to establish financial-assistance policies for consumers in need. While consumers suffer, these hospitals continue to pad their bottom lines, and their executives are paid handsomely.
According to data from the Lown Institute, many nonprofit hospitals are spending less on charity care than the value of the tax breaks they receive as part of their nonprofit status. Data show that this deficit in Wisconsin ran over $700 million in 2021.
Lawmakers are looking to establish stricter charity care requirements for tax-exempt hospitals and to define the necessary community engagement for nonprofit hospitals. These measures can help to curb much of this anti-patient behavior by hospitals.
CQC urges all hospitals, especially nonprofit hospitals, to keep up their end of the bargain to better serve their communities and deliver care for patients when they need it most.
