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AHA urges Congress to protect charitable tax deduction

February 14, 2013

Testifying today for the AHA, a representative from Children's National Medical Center in Washington, D.C., urged the House Committee on Ways and Means to exclude charitable giving from any limitations on federal tax deductions. "Let me give you a brief sketch of the financial environment in which hospitals now operate," Pam King Sams, the hospital's executive vice president for development, told the committee at a hearing on tax reform and charitable contributions. "A recent Moody's report maintains a negative outlook for nonprofit health care for 2013. It cites Federal cuts to health care spending, limited reimbursement increases from commercial insurers and a tepid economy as causes. Since 2010, Medicare hospital payments have been reduced by $250 billion over 10 years. As a result, hospital Medicare margins stand at an average negative 7%. In 2011, Medicaid overall paid hospitals $6 billion less than the cost of treating Medicaid patients….Think of the incentive of the charitable contribution tax deduction as a key that helps provide continued access to hospital services in communities across the country."