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Clinical Benefits of Not-for-Profit Health Systems Beyond Charity Care - Data Snapshot

  • 1.  Clinical Benefits of Not-for-Profit Health Systems Beyond Charity Care - Data Snapshot

    Posted 09-05-2024 12:04:00 PM

    When policymakers or well-meaning individuals involved in health policy talk about the benefits of not-for-profit hospitals, "charity care" - one of several measurable benefits - is the most common assessment. Yet while charity care is an important component of community benefit, it's narrowly defined and does not account for the full range of essential services offered by not-for-profit hospitals and health systems, including academic health systems. 

    My colleagues at the AAMC Research and Action Institute and I have developed a new data snapshot that examines the differences in services offered across health systems and hospital types to better illustrate their clinical benefits beyond just charity care. 

    Our analysis found that not-for-profit hospitals -and particularly teaching hospitals- were more likely than for-profit hospitals and nonteaching hospitals to offer a comprehensive list of health care services, such as those that are generally under-reimbursed but critical to the community. This includes both highly specialized unprofitable standby services such as trauma and burn centers; but also other critical services such as psychiatric services and substance use disorder care. 

    As policymakers consider cuts to these institutions-under changes to tax status or cuts to other subsidies-they need to consider what's at stake for patients too. Eliminating these critical investments in patient care services may negatively impact access to care and health outcomes in their communities. 

    I'm curious to know your thoughts on community benefit, and what policymakers and hospitals can do to more accurately assess the provision of care services. 


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    Atul Grover
    Inaugural Executive Director
    Association of American Medical Colleges
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