Big Nonprofit Hospitals Expand in Wealthier Areas, Shun Poorer Ones
Despite lucrative tax breaks for serving needy communities, many large systems focus growth on higher-income neighborhoods
"Of hospitals divested or closed by St. Louis-based Ascension, about half were located in higher-poverty areas, compared with 40% of the Catholic system’s acquisitions."
"Ascension was the most active deal maker in the Journal’s review. Through deals involving 93 hospitals over the past 20 years, Ascension has grown into one of the largest U.S. systems, with $28 billion in revenue and $19.5 billion in cash reserves in its most recent fiscal year, ended June 30."
"Among the hospitals Ascension pruned as it grew were those serving some of the poorest neighborhoods of Washington, D.C., and Chicago."
Who benefits?
“It’s a fair question to ask: What communities are benefiting from those activities?” said Amanda Starc, a health economist at Northwestern University."
"Targeting tax breaks to charities that benefit wealthier communities ultimately makes well-to-do areas better off at the expense of poorer ones, she said."
https://www.wsj.com/articles/nonprofit-hospitals-deals-tax-breaks-11672068264