Experts weigh in on new report that questions whether hospitals earn nonprofit tax-exemptions

By Rachel Rood

Published June 29, 2022 at 1:50 PM EDT

On the "Sound of Ideas," we dive into a series from Ideastream's health team looking into nonprofit hospitals and their tax breaks. [sfam_photo/shutterstock]

A report published this spring by the Lown Institute claims that many nonprofit hospitals across the country earn more in tax breaks, than they gave back to their communities, asking some to question whether these hospitals are earning their tax-exempt status.

In the April report, the Cleveland Clinic was found to have the fourth largest tax-break-to-community-benefit-spending deficit, in the country. It received $611 million more in tax breaks than it spent on charity care and community investment, actually an improvement from last year's Lown report, which ranked them worst in the nation. Other hospitals in the area also operated at a deficit in this year's report.

According to Lown, University Hospitals had a $175 million deficit, and the Sisters of Charity Health System, which runs St. Vincent Charity Hospital, had a $24 million deficit.

'Hospitals' strongly disagree with the report's findings, and say that they follow the IRS's tax exemption guidelines.

Ideastream's digital producer on the health team, Stephanie Czekalinski, looked deeper into the issue in Northeast Ohio.This hour on the "Sound of Ideas," we're going to learn more about her three-part investigation, and include some of the experts from her reporting.

Meanwhile, just yesterday, a new report by Lown put another local hospital at the top of a different ranking. MetroHealth, Cuyahoga County's publicly owned healthcare system, was ranked 15 of the 66 hospitals regarded as the most socially responsible in the country - a ranking achieved by just 2% of all hospitals.

We want to note that we did reach out to the Cleveland Clinic to get their perspective on this issue. They, the American Hospital Association, and the Ohio Hospital Association, each declined to participate in this show. We do have some written statements from them, which we will reference during the show.

-Stephanie Czekalinski, Digital Producer, Ideastream Public Media

-Dr. Vikas Saini, MD, President, Lown Institute

-Jim Rokakis, Former Cuyahoga County Treasurer & Senior Advisor, Ohio Land Bank Association

-August Fluker, Architect & Member, Cleveland City Planning Commission