California State Auditor’s Report On Nonprofit Hospitals: Statute Prevents State Agencies From Considering Community Benefits When Granting Tax-Exempt Status, While The Effects Of Purchases And Consolidations On Prices Of Care Are Uncertain

August 15, 2012
The auditor reviewed community benefit statements from four non-profit hospitals in the state to identify the methods the hospitals used to quantify their community benefits and to determine what to include as costs of uncompensated care for the hospitals’ fiscal year that ended during 2010. The hospitals in this analysis were California Pacific Medical Center St. Luke’s Hospital; El Camino Hospital Los Gatos; Mission Hospital Laguna Beach; and San Leandro Hospital. The auditor found wide variation in how the hospitals calculated community benefit.
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