Report Shows Value of Community Benefits Far Exceed Potential Tax Revenue
TIFTON, Ga.--(BUSINESS WIRE)-- The Georgia Alliance of Community Hospitals has released reports that conclusively illustrate that community, Not-for-Profit (NFP) hospitals play a vital role in providing quality health care and special services in their communities – the value of which far exceeds the cost to the state in unclaimed tax revenue. The Alliance commissioned Cleverley & Associates and Pershing Yoakley & Associates, leading healthcare finance specialists, to report on the cost of services provided in relation to the tax benefits they receive as NFP hospitals. These findings were released to the Special Council on Tax Reform and Fairness for Georgians as they made recommendations to the General Assembly.
“Georgia’s community, Not-for-Profit health systems and hospitals provide invaluable benefits to their communities - care that is costly to the hospitals and invaluable to Georgia,” said Monty Veazey, president of the Georgia Alliance of Community Hospitals. “Without the added services these hospitals provide, Georgia would have nearly no trauma care, intensive care for newborns.”
The state has long recognized that maintaining these hospitals’ tax-exempt status is essential for them to offer this care. While the state budget is in crisis, it is incumbent on the General Assembly to seek opportunities to generate more revenue for the state, but not options that would cost the state more than it would gain. These reports help assess the value of the community, NFP hospitals contributions.
Their findings for Georgia community, NFP hospitals include:
- For every one dollar ($1) of total state tax exemptions, community, NFP hospitals in Georgia provided an average of nearly four dollars ($4) in uncompensated care (Pershing Yoakley)
- Alliance member hospitals have an aggregate shortage of at least $2.3 billion in cash reserves to meet their established replacement needs (Cleverley)
- Statewide community, NFP hospitals are, on average, reinvesting substantially more in their communities than their in-state For-profit and national counterparts (Cleverley)
- Community, NFP hospitals provided patient care totaling nearly $861.5 million more than the estimated value of their state tax exemptions that was uncompensated (Pershing Yoakley)
About the Alliance
The Georgia Alliance of Community Hospitals has been working for the best interests of community, NFP hospitals and Georgia's health care consumers since its founding in 1983. The Alliance is dedicated to furthering the ability of community hospitals to fulfill their primary mission of serving their communities. To this end, it serves as a resource to its members and a leading expert in advocating for sound health care policies and regulations.
CONTACT:
Porter Novelli
Media Contact:
Grace de Moya, 404-995-4540
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KEYWORDS: United States North America Georgia
INDUSTRY KEYWORDS: Health Hospitals Public Policy/Government Healthcare Reform Congressional News/Views Other Policy Issues Public Policy State/Local General Health
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