California's Nonprofit Hospitals and Charity Care

13-11.08

WHEREAS, nonprofit hospital's in California frequently conduct business similar to for profit hospitals and, the profit (or excess revenue) of California's nonprofit hospitals has soared into the billions of dollars while their top administrators' salaries have climbed into the millions, while they continue to maintain a tax-exempt status; and

WHEREAS, according to the State of California Auditor, in the 2012 audit, the amount of charity care they provide has dropped to a percentage of service that is the same as or less than that of for-profit hospitals, while economically struggling counties and cities in California lose more than $1 billion as a result of the tax exemption of nonprofit hospitals, in addition to the direct payments counties make to hospitals in their geographic area to provide hospital care for the poor, thus effectively subsidizing the hospitals profits with taxpayer dollars; and

WHEREAS, the California State Legislature and Board of Equalization have already began to investigate nonprofit hospitals as well as questioning what nonprofit hospitals consider charity care and community benefits since there is currently no clear definition of what constitutes charity care or community benefits nor are there any clear enforceable penalties for non-compliance.

THEREFORE BE IT RESOLVED, Therefore be it resolved, the California Democratic Party calls on Governor Jerry Brown, the California State Legislature and the State Board of Equalization to act to clearly define charity care and community benefits.

THEREFORE BE IT FURTHER RESOLVED, that this legislation holds nonprofit hospitals accountable by protecting both the rights of all patients and the rights of the tax payers of California.

 

Authored by Rochelle Pardue-Okimoto, AD 15;
Co-Sponsors: Hilary Crosby, California Democratic Party Controller, Democratic Party of Contra Costa County, El Cerrito Democratic Club, African American Caucus and Wendy Bloom, AD15

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Adopted by the California Democratic Party
At its November 2013 Executive Board Meeting
Westin Hotel, Millbrae
November 24, 2013

 

 

 

 

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