Report: Indiana Nonprofit Hospitals Deliver $3.9B Billion in Total Benefits to Their Communities Investment in communities exceeds the value of tax exemptions by $2.3B Billion.
Jan. 24, 2025 (INDIANAPOLIS) — A new report by the international accounting firm EY shows that Indiana’s nonprofit hospitals provided $3.9 billion in total benefits to their communities in 2022 – nearly two and a half times, or $2.3 billion more than the value of their tax exemptions, which totaled $1.6 billion in 2022, the most recent year for which comprehensive data is available.
As part of their charitable missions, Indiana’s nonprofit hospitals provide numerous programs to meet the needs of their patients and communities, including financial assistance, charity care, health screenings, transportation, chronic disease management, nutrition assistance, school-based services, training the next generation of health professionals, and more.
“Indiana hospitals are focused on their mission of not only providing high-quality care to patients, but on serving the needs of their entire communities,” said Scott B. Tittle, president of the Indiana Hospital Association. “This report is a testament to the broad range of services our members provide outside the four walls of the hospital to improve the health of Hoosiers and the communities they serve.”
According to the report, total benefits Indiana’s nonprofit hospitals provided to their communities, including non-traditional community benefits, such as bad debt attributable to financial assistance and Medicare cost shortfalls averaged 15% of their annual expenses. Almost 7% of these expenses, totaling nearly $1.8 billion, was dedicated to providing free or discounted care to underprivileged Hoosier patients.
“As lawmakers consider proposed changes to the nonprofit status of Indiana hospitals, this report demonstrates that these vital services are more than a worthy investment and that hospitals are fulfilling their charitable missions,” said Tittle.
