News Releases

Tax Expert Engaged to Examine Hospital Tax-Exempt Status

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.