House Ways and Means Committee holds hearing on nonprofit hospital tax exemptions and healthcare costs

The House Ways and Means Committee held a hearing Tuesday examining nonprofit hospital systems' use of tax-exempt status and whether their charity care justifies billions in tax breaks. Committee Chairman Jason Smith highlighted a gap between the $28 billion in annual tax advantages nonprofit hospitals receive and the approximately $16 billion they spend on charity care, questioning spending on non-healthcare activities. Republicans criticized hospital CEOs for high executive compensation, large profit margins, and mergers that contribute to rising healthcare costs.