Nonprofit hospitals receive significant federal, state, and local tax exemptions, partly based on the rationale that nonprofit hospitals provide public goods and services. Through Minimum Charity Care Provision (MCCP) requirements, nonprofit hospitals are required to spend a certain percentage of their revenues on charity care. However, it is not clear whether these requirements increase spending on charity care. This brief summarizes findings from research examining the differences in provisions of charity care across different hospital market sectors – non-profit, for-profit, and government. Findings suggest that MCCP requirements for nonprofit hospitals do not lead to more charity care. If anything, targeting policies that use external incentives may have crowded out some organizations’ internal motivations to provide public goods and services.
Charity Care Provisions, Health Economics, Health Policy
Health Economics | Public Affairs, Public Policy and Public Administration | Public Economics
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The authors thank James F. Connolly for helping draft this brief.
Rothbart, Michah W. and Yoon, Nara, "Do Minimum Charity Care Provision Requirements Increase Provision of Charity Care in Nonprofit Hospitals?" (2021). Population Health Research Brief Series. 156.
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