Nonprofit Hospitals Face California State Hearing on Tax-Exempt Status

A California state Senate committee is discussing issues about nonporfit hospitals at a hearing as part of the debate over whether nonprofit hospitals do enough to justify their tax-exempt status. California law requires most tax-exempt hospitals to submit information annually on their "community benefits" through free or partial charity care and other means.

But state law doesn't require nonprofit hospitals to deliver specific amounts of uncompensated care and other community benefits in order to qualify for their tax-exempt status, according to state auditors.