The Lown Institute, an independent health care think tank, announced that its new report found that most Wisconsin hospitals spend less on their communities than they receive in tax breaks as nonprofit organizations.
Analysts say Wisconsin hospitals fell short in giving back to their community by an average of $493 million per year from 2020 to 2022. This so-called “fair share deficit” is enough to cover the majority of rural hospital losses, nearly double the governor’s proposed budget for mental health service expansions or wipe out medical debt for 280,000 people.
Wisconsin nonprofit hospitals with the largest fair share deficits include:
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Froedtert Community Hospital, New Berlin, (-$75 million);
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Froedtert Hospital, Milwaukee (-$44 million);
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Aurora St. Luke’s Medical Center, Milwaukee (-$37 million);
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Aurora BayCare Medical Center, Green Bay (-$28 million); and
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SSM Health St. Mary’s Hospital, Madison (-$21 million).
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Forty-three Wisconsin hospitals collectively invested $104 million more in their communities than the value of their tax benefits.
According to the Lown Institute, policy solutions include more transparent reporting requirements, improved charity care standards and defined community spending targets to ensure all nonprofit hospitals meet their obligations.
