CHA News Article

CHA Video Describes Vital Role Nonprofit Hospitals Play in Their Communities

CHA’s Public Advocacy Program has produced a new video to illustrate the vital role nonprofit hospitals play in their communities. The video is part of a larger campaign to defeat AB 975 (Wieckowski/Bonta), which would impose a new and unfair burden on nonprofit hospitals by establishing a “guilty until proven innocent” presumption for hospitals that report an operating margin of more than 10 percent. Under current law, nonprofit hospitals are required to invest their funds into programs, equipment and services that provide significant community benefits. AB 975 would threaten hospitals with the loss of their tax-exempt status, which would require significant cutbacks. Communities would then lose the important community service programs hospitals provide that are tailored to meet local needs. The consequences would be devastating for rural and urban hospitals that seek to provide community benefits developed with input from local organizations, consumer groups and others to help ensure that underserved populations have access to quality health care. By forcing hospitals into a for-profit model, AB 975 jeopardizes community benefit programs with drastic cuts or outright elimination.