CHA News Article

CHA Sponsors Bill on Community Benefits Reporting for Nonprofit Hospitals
New legislation would strengthen hospitals’ ability to meet community health needs

Assemblymember Matt Dababneh (D-Encino) has introduced legislation to provide greater transparency and consistency in the reporting and disclosure of investments made by nonprofit hospitals to strengthen the health and well-being of the communities they serve. Sponsored by CHA, AB 1046 amends California law so nonprofit hospitals’ community benefit reports will be more accessible to the public. The reports include a hospital’s in-house investments, highlight hospital partnerships with local nonprofits and clinics, and account for costs — above state-funded reimbursements — to care for patients enrolled in Medi-Cal. The bill would also align federal and state community benefits laws, streamlining administrative mandates so that hospitals can focus on addressing local health care needs. Every year, California hospitals provide more than $13 billion in uncompensated health care services.

“For more than 20 years, California’s nonprofit hospitals have led the nation in ensuring that vulnerable populations have access to vital health care services and wellness programs in local communities throughout the state.” CHA President/CEO C. Duane Dauner said. “AB 1046 modernizes our state’s community benefits requirements so that local hospitals can continue to meet the needs of their communities.”

After spending on uncompensated services, nonprofit hospitals reinvest every penny of unspent revenue into the community, which, based on IRS filings, is approximately $5 billion per year. California’s existing law, enacted in 1994, helped establish the framework for the new national community benefit standard that is now part of the federal Affordable Care Act.