Tax Expert Engaged to Examine Hospital Tax-Exempt Status

The Center for Health Affairs has engaged Ohio Tax Research Group to conduct a study that will quantitatively demonstrate that the community benefit provided by Northeast Ohio hospitals far outweighs the cost of their hospital tax-exempt status.

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Hospital tax-exemption is an issue that seems to pop up in the media every few years.

Cleveland, Ohio (PRWEB) May 15, 2014

For most people, the reasons behind hospital tax-exempt status are clear. Yet, for the last several years a small, vocal contingent that includes a variety of interested parties – from legislators to teachers’ unions to reporters – has called into question the nonprofit tax status of hospitals both across the U.S. and in Northeast Ohio. To address some of the charges that tend to recur around this issue, The Center has engaged Ohio Tax Research Group to conduct a study that will quantitatively demonstrate that the community benefit provided by Northeast Ohio hospitals far outweighs the cost of their hospital tax-exempt status.

Since the most recent round of challenges has specifically targeted Cleveland hospitals, the study will focus on hospitals in the city of Cleveland and their impact on the city and Cuyahoga County. The study, which will take roughly two months to complete, will look at the issues surrounding hospital tax-exempt status from several angles and will cover:

  • Rationale for tax exemption
  • Examination of reasons behind challenges to tax exemption
  • Comparison of foregone property tax revenues and community benefit
  • Payroll taxes contributed to Cleveland and Cuyahoga County by hospitals
  • Other local tax revenue generated by Cleveland hospitals and how they benefit their localities

“Hospital tax-exemption is an issue that seems to pop up in the media every few years,” said Deanna Moore, vice president, corporate communications. “We’ve always been confident in responding that our members’ community benefit amounts to much more than anything localities could hope to gain from taxing hospitals. This study will help us quantify that response.”

For more information on the forthcoming study or hospital tax-exempt status, please contact Deanna Moore via email or at 216.255.3614, or Tony Gutowski, public policy development manager, via email or at 216.255.3610.

As the leading advocate for Northeast Ohio hospitals, The Center for Health Affairs provides members with vital services and resources aimed at enhancing the region’s healthcare community. The Center delivers on this goal by focusing its efforts on areas that benefit from a regional approach: Healthcare Workforce; Emergency Preparedness; Public Policy & Advocacy; Finance & Reimbursement; and Community Initiatives. With a rich history as the Northeast Ohio hospital association, dating back to 1916, The Center serves as the collective voice of hospitals and the source for Northeast Ohio hospital and healthcare information. As leaders, we continuously scan the periphery, looking for opportunities to enhance the region’s workforce, better prepare our hospitals for an emergency, and increase the region’s wage index. And because of our business affiliation with CHAMPS Healthcare, we have the resources to provide a broad level of professional services to our members. The Center, located in downtown Cleveland, is proud to advocate on behalf of 38 acute-care hospitals and two long-term acute-care hospitals in six counties. For more, visit chanet.org.