Smucker Applauds Committee Passage of Tax-Exempt Hospital Transparency Act

WASHINGTON - Representative Lloyd Smucker (PA-11), a senior member of the House Ways and Means Committee, applauded the committee's approval of H.R. 9504, the Tax-Exempt Hospital Transparency Act, during today's markup.

The Tax-Exempt Hospital Transparency Act establishes new reporting requirements for tax exempt hospitals to help ensure they are meeting their community benefit and charitable care contributions.

Rep. Smucker is an original cosponsor of the legislation, introduced by Rep. Greg Murphy, M.D. (NC-03).

"Tax-exempt status should be reserved for hospitals providing an essential public good. For decades, taxpayers have subsidized hospitals organized as non-profit charities, but today many of our nation's largest hospital systems operate more like corporations than traditional charities,"said Rep. Smucker. "This legislation increases transparency and improves accountability to ensure hospitals uphold the commitments they make to the communities they are expected to serve. Taxpayers deserve the confidence that the tax benefits they provide are supporting care for their communities. I am proud to work with Rep. Murphy on this important issue and urge my colleagues to pass this bill on the House floor."

"The majority of income from nonprofit hospitals comes from federal payments," said Congressman Greg Murphy, M.D. "Nonprofit hospitals receive significant tax benefits in exchange for providing meaningful community benefits and charitable care. Patients and taxpayers deserve transparency regarding how these institutions are meeting those obligations and serving the communities that rely on them. My legislation promotes greater accountability by improving transparency requirements and helping ensure nonprofit hospitals remain focused on their charitable mission. Increased transparency empowers patients, informs policymakers, and strengthens trust in our healthcare system. I am proud that this legislation passed in the Ways and Means Committee, and I look forward to advocating for its passage on the House floor."

Currently, nonprofit hospital systems are not required to report operational and financial information on a facility-by-facility basis. This legislation would require those disclosures.

Background:

• Nonprofit hospitals receive $37 billion in taxpayer benefits annually.
• According to KFF, 58% of community hospitals are organized as non-profits.
• A 2023 KFF study estimated the total value of tax exemption for non-profit hospitals was $28 billion in 2020 alone-eclipsing hospitals' self-reported figures for charitable care.
• As of 2023, the U.S. hospital sector was a $1.4 trillion industry.

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