Community demographics, hospital size and hospital charity care

Nonprofit hospitals receive various tax breaks from the federal, state and local governments if they maintain their tax-exempt status. Tax breaks include exemption from federal and state income tax, property taxes, and sales tax. In exchange, nonprofit hospitals have to provide community benefits to offset the tax breaks. The tax-exempt status of nonprofit hospitals has come under increasing scrutiny in recent years, with governmental units claiming that nonprofit hospitals are not providing enough community benefits for the tax breaks they receive.