Introduction
In the last century, the United States decided to exempt non-profit medical organizations from paying taxes. One of the main requirements of the tax service is the exemption of hospitals from taxes through the provision of charitable assistance to the population in the treatment. First of all, it considers the financial capabilities of each organization. Health promotion is included in the concept of gratuitous aid and is the main criterion for non-commercial organizations in freedom from paying taxes.
At the same time, hospitals must meet several other points, including the presence of a modern emergency department, where everyone is treated, regardless of their social and material status. In addition, the organization undertakes to join the Medicare and Medicaid programs and to have a government that represents the interests of the society. Moreover, organizations provide a full and open report on charitable activities. Thus, the expectation of hospitals is to increase direct patient care benefits and initiatives to improve the health of the population. Furthermore, the policy of hospitals is aimed at spending in relation to the protection of public health. This may include organizing educational events and helping the population to learn about their health. However, the State ran a massive program from 2010 to 2016 to ensure that hospitals meet these expectations.
Expectations of Hospitals
Participation in the Medicare program consists in insurance of medical organizations. At the same time, the organization’s assistance in paying medical bills comes from trust funds. The main expectation from the organization is that the hospital will provide free care primarily to the elderly over 65 years of age (Cox & Westbrook, 2017). Simultaneously, the organization accepts patients with disabilities and dialysis, regardless of their income. Organizations expect patients to pay deductibles to cover their budget. However, no more premiums are required each month to provide non-hospital coverage.
At the same time, participation in Medicaid is important for hospitals. They expect the government program to cover their health care costs for people whose resources are deemed limited. At the same time, non-profit organizations will be able to save their budget without significant losses and participate in the tax exemption program (Cronin, 2017). Moreover, Medicaid includes additional benefits for people, which is important for hospital costs. The franchise, which pays for medical manipulations for patients, takes on most of the costs, which allows the organization to plan and set material expenses.
Hospitals are looking forward to providing an accessible emergency room, which can be achieved through tax exemptions. Organizations have a budget dedicated to improving the hospital environment for visitors. In doing so, the tax program allows them to fund their money into more development and modern technology for the emergency department. At the same time, hospitals hope for the help of federal programs for non-profit organizations. Helping those in need is the inherent responsibility of every medical organization, so every non-profit hospital is committed to fulfilling its duty in accordance with state policy.
Equally important, organizations should be involved in education and research programs aimed at improving the protection of public health. Hospitals and their management conduct large-scale employee training and retraining of personnel. Moreover, through the joint collaboration of non-profit organizations and state health organizations, activities are carried out to research and educate the population in health care and livelihoods.
Efforts Taken by State
Community Benefit Insight tracks the efforts each state is making to meet these expectations. From 2010 to 2016, the State of Washington provided for many important points in the provision of healthcare assistance and took into account the regulation for non-profit hospitals. In 2010, the Medicaid program received the most attention, resulting in $690 million in spending with 98.3% of all non-profit healthcare organizations participating (State Analysis, n.d.). At the same time, financial assistance at a cost of about $230 million was spent on supporting organizations to implement their policies. However, a relatively small percentage was allocated to research programs.
In the following year, some changes in the distribution of the budget can be noticed. In 2011, the Medicaid program received the same active attention, with a budget of $670 million (State Analysis, n.d.). The amount of financial aid has increased to approximately $2 million (State Analysis, n.d.). Moreover, the state has stepped up the subsidized medical services it borrowed after training in the medical professions. In addition, the last place in the amount of $8 million is occupied by public construction, which is not given attention (State Analysis, n.d.). In 2012, the state’s policy does not show much shifts and the main items of expenditure retain their position in the rankings. Public construction and research take the last places, with a small budget expenditure. State policy funding for community health improvement and community benefit operations has increased. spending on cash and in-kind contributions to community groups has decreased and spending on subsidized health services has enlarged.
The trend towards the distribution of the budget for social benefits will continue in subsequent years. However, it is worth noting that in 2013 the number of non-profit organizations participating in Medicaid decreased to 97.6% compared to previous years, where the total number was above 98% (State Analysis, n.d.). It is important to add that at the same time the number of hospitals participating in health professions education insignificantly increased.
In 2014, Medicaid remained at the top of the list in social welfare spending. At the same time, the costs for everything else were significantly reduced for all other categories. Subsidized health services have moved into second place in terms of spending, and the number of healthcare organizations in this category has increased further (State Analysis, n.d.). The overall budget for all other categories was reduced and the state did not allocate large subsidies.
Some significant changes in different categories are observed in the following In 2015, financial assistance at cost reached 100% participation of non-profit organizations. However, participation in health professions education has dropped to almost 80% (State Analysis, n.d.). This is the lowest figure for the entire period from 2010 to 2016. The study remained the lowest category of social spending, which may indicate that the state is not interested in such activities. The overall budget remains at a reduced level compared to 2010 and 2011 (State Analysis, n.d.). The total spending on social benefits in 2016 on Medicaid exceeded one billion dollars, more than in all other years. The participation of hospitals in Cash and in-kind contributions to the community group has increased and amounted to almost 90% (State Analysis, n.d.). However, at the same time, funding for this category amounted to just over $22 million (State Analysis, n.d.). This slightly reduces the results achieved by the state in the early years.
Conclusion
Thus, based on the analysis, it can be said that the state pays enough attention to the Medicaid program in implementing tax exemption policy for non-profit medical organizations. Moreover, throughout the period from 2010 to 2016, the trend in spending on certain categories of social benefits continued, which indicates high stability. However, it should be noted that some categories are not given due importance, which may indicate stagnation in the system.
References
Cox, K., & Westbrook, D. H. (2017). Hospital Leadership Recognizes Need to Create Partnerships to Treat Consequences of Poverty. Current problems in pediatric and adolescent health care, 47(9), 229-232.
Cronin, C. E. (2017). The prevalence of community benefit participation in the hospital region and its relationship to community health outcomes. Journal of Health and Human Services Administration, 98-132.
State Analysis. (n.d.). Community Benefit Insight.