Virginia Hospitals Exceed $3.25 Billion in Community Benefit

Virginia’s hospitals and health systems provided more than $3.25 billion in community benefit and other types of community support in the Commonwealth in 2016, according to data provided by 94 Virginia hospitals that has been analyzed by the Virginia Hospital & Healthcare Association (VHHA). The amount of community benefit provided by Virginia’s tax-exempt hospitals exceeded the value of the tax exemptions they received by $642.5 million. Hospitals support free clinics, mobile treatment programs, and free health screenings. They provide prescription drug assistance, transportation, and many other programs and initiatives beneficial to the community. Hospitals provide substantial subsidies to clinical services such as trauma centers and neonatal units, and they support the education of future nurses, doctors, and other health care providers. In addition to their role as providers of essential health services, local hospitals and health systems are economic cornerstones in their communities, employing 125,674 people, generating nearly $40 billion in economic activity, and supporting local businesses and vendors. The data used to determine community benefit is based on hospital costs, not charges, and includes all acute care and certain specialty hospitals in the state. “Community benefit” is defined using the Internal Revenue Service definition for Schedule H of Form 990. The 2016 community benefit data will be compiled in a forthcoming annual report which VHHA distributes each year. The 2017 report, which reflects 2015 data, can be viewed online here. The graphic below illustrates the annual growth in community benefit provided by Virginia’s hospitals from 2008-2016. (12/15)

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