Non-Profit Hospitals Are Abusing Their Tax-Exempt Status & Offering Minimal Care

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Published on August 07, 2024, 2:01 pm
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New York City stands as a beacon of diversity, culture, and opportunity. Yet despite its vibrancy, a significant portion of its population remains underserved, facing barriers to accessing essential healthcare services. As hospitals continue to play a critical role in the city’s healthcare landscape, it is imperative that we address the need for equitable access to high-quality care for all residents. Every New Yorker deserves the assurance that their health concerns will be met with compassion and excellence, regardless of their socioeconomic status or background.

Non-profit hospitals were created to ensure all who need healthcare, are able to access it. In exchange for tax-exempt status, hospitals would offer free or discounted care within their facilities, in local clinics, or even in community centers.

Unfortunately, nationwide, non-profit hospitals are abusing their tax-exempt status and offering very minimal care.

Take, for example, NewYork-Presbyterian; it labels itself as a non-profit, even though they enjoy a hefty double-digit profit margin and are the most expensive hospital in our state. Worse, NewYork-Presbyterian Hospital is oftentimes failing to offer safe care – the bare minimum for a hospital. While the hospital argues it is a premium system that deserves to charge as such, publicly-available data reveals their flagship hospital on the Upper East Side has earned a “C” grade for quality. Visitors to the facility face a higher-than-average risk of severe health concerns, including having a dangerous object left in their body after surgery, experiencing a serious breathing problem during surgery, or developing an infection in their blood.

Despite their failings, New York- Presbyterian received more than $415 million in tax breaks in 2021, but spent only $142 million on community benefits – a gap of roughly $247 million. This money should go towards helping underserved New Yorkers in need, instead of lining the pockets of hospital executives. 

Unfortunately, this kind of behavior has become the norm in our state. According to a report from the Lown Institute, more than 70% of New York’s nonprofit hospitals spend less money on benefits like community programs and charity care than the value of their tax breaks.

As president of New York City’s largest public employee union, I, like our members, are faced with difficult healthcare decisions every day. When employers face rising healthcare costs, these expenses are passed along to their employees through lower wages or worse coverage options. As a result, businesses have found it increasingly difficult to afford healthcare plans for their employees – a real challenge for hard working employees who deserve good benefits for themselves and their families.

Senator Schumer and Representative Jeffries, hold the corporate hospital industry accountable so that your constituents can actually receive the care they need from hospitals like NewYork-Presbyterian.

Author:

Dejon Williams
President

AFSCME Local 299

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Jonas Bronck is the pseudonym under which we publish and manage the content and operations of The Bronx Daily.™ | Bronx.com - the largest daily news publication in the borough of "the" Bronx with over 1.5 million annual readers. Publishing under the alias Jonas Bronck is our humble way of paying tribute to the person, whose name lives on in the name of our beloved borough.