Press Release

Sacramento Hearing, Rally Wednesday: What Do Hospitals Provide in Return for Non-Profit Status?

Note: Room Change in Capitol, Hearing in Room 112

Nurses to Unveil New Report on Nonprofit Hospitals and Charity Care

Do California not-for-profit hospitals return an equitable benefit to the state and local communities for the huge tax privileges they receive for their nonprofit status? Do they provide sufficient levels of charity care? Are they publicly accountable? Are their actions adequately measurable and transparent?
Those are among questions to be explored in a hearing by a special California Senate Select Committee on Charity Care and Nonprofit Hospitals to be held Wednesday, August 15 in the State Capitol that will be followed by a rally sponsored by the California Nurses Association on the Capitol steps.
CNA will be presenting a new report by its research arm, the Institute for Health and Socio-Economic Policy, on the advantages private, not-for-profit hospitals accrue and what they provide in return.
When:                                  Wednesday, August 15
Legislative Hearing:           State Capitol, Room 112, 10 a.m. to 12 noon
Nurses Rally:                      State Capitol, North Steps, 12:15 p.m. to 1 p.m. (following hearing),

At the hearing, to be hosted by Sen. Ellen Corbett, chair of the committee, legislators are expected to hear testimony from Grant Parks, principal auditor from the California State Auditor’s Office, state Board of Equalization Member Betty Yee, CNA leaders and others. The Auditor’s Office released its own report last week noting weaknesses in the law in what hospitals are required to deliver to qualify for tax-exempt status.
A number of large nonprofit hospital systems, in particular, have come under growing scrutiny for what some see as rampant abuses, including closure or reduction of patient services and providing minimal levels of charity care, while amassing huge profits and making lavish payments in compensation to company executives while benefiting from favorable tax treatment.