Where nonprofit hospitals are spending federal tax dollars: AHA

Becker’s Hospital Review – Wednesday, September 17, 2025
By Alan Condon

As scrutiny over nonprofit hospitals’ tax-exempt status intensifies, the American Hospital Association is making the case that the value these hospitals provide far exceeds the tax benefits they receive.

In testimony submitted Sept. 16 to the House Ways and Means Committee, the AHA emphasized that nonprofit hospitals provided nearly $150 billion in total benefits to their communities in 2022, a nearly 50% increase since 2017. That spending represented 15.1% of hospitals’ total expenses, according to IRS data.

By comparison, a 2024 analysis from Ernst & Young found that for every $1 of federal tax exemption, nonprofit hospitals delivered $10 in community benefit.

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