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Journal Article
Hospital Tax Exemption: How Did We Get Here?
2012
Overview
Nonprofit organizations, including nonprofit hospitals, have been exempt from federal income taxation since their inception in the early 20th century, when these organizations accounted for a small portion of the US economy. Nearly all hospitals were organized as nonprofit at that time, affiliated with either religious groups or foundations, and they served families who could not afford to pay a doctor to visit their home. Providing public benefits without question, these hospitals depended heavily on charitable gifts to finance their operations and earned little, if any, net income. Over the ensuing 100 years, drastic changes in medical technology have transformed hospitals from places where the poor seek primary care and comfort to places where everyone goes to get various types of care when needed. Today, some nonprofit hospitals have expanded their roles further by undertaking programs to promote healthy lifestyles or otherwise prevent illness.
Publisher
Excellus Health Plan, Inc,SAGE Publications,Sage Publications, Inc,SAGE PUBLICATIONS, INC,SAGE Publishing
