Just what is 'community benefit'? PDF Print E-mail
Indianapolis Star, December 14, 2008 - Web sites and courses for physicians are among the things that hospitals define as public service


Just how do nonprofit hospitals benefit their communities?

Free care to the poor is one way. But the bulk of services hospitals provide to justify their tax-exempt status comes from other areas.

It could be providing health information on a hospital Web site. Or it could be a training class for doctors.

A survey of 94 hospitals across Indiana last year found that those organizations combined to provide more than $1 billion in community benefit, including almost $360 million in charity care. The data were gathered by the Indiana Hospital Association.

Financial shortfalls from Medicaid reimbursement account for a large portion of community benefit. Medicaid, a government health insurance program for the poor, typically reimburses hospitals below their costs.

Hospitals also provide free programs and educational services such as cholesterol screenings, safety seminars on children's car seats, and cancer support groups.

A more detailed look at one Central Indiana hospital reveals just how varied community benefit can be.

St. Vincent Indianapolis Hospital, on the city's Far Northside, reported $62.3 million in community benefit in fiscal 2006, according to filings with the Internal Revenue Service.

That total included $11.6 million in charity care. It also included initiatives such as a pediatric asthma outreach -- a school-based program designed to educate families about asthma and how to treat the chronic condition.

Some forms of community benefit, though, are far removed from the high costs of caring for poor, uninsured patients.

St. Vincent has cited its Web site as part of its community benefit -- "a wealth of information available to the public on numerous health topics," it said in its filing to the IRS.

St. Vincent Carmel Hospital, in mostly affluent Hamilton County, has cited in-service courses for its physicians on new drugs and treatments for patients as part of its community benefit.

Vince Caponi, chief executive of St. Vincent Health, said it tries to focus its charitable services within the pockets of poverty in Hamilton County.

"What we want to do,'' Caponi said, "is to make sure first and foremost we take care of the poor and underserved in our community."

By Daniel Lee, Indianapolis Star reporter
Contact Daniel Lee: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   (317) 444-6311

Indianapolis Star

Source: http://www.indystar.com/apps/pbcs.dll/article?AID=2008812140389

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