IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v39y2025i3p182-195.html

Assessing the Tax Impacts and Community Benefits of Nonprofit Hospitals with IMPLAN

Author

Listed:
  • Donald A. Planey
  • Arrianna Marie Planey
  • Stephen A. Sherman
  • Hillary K. Hecht
  • George M. Holmes

Abstract

Nonprofit hospitals receive scrutiny regarding two interrelated issues: (1) the equity impacts of their tax-exempt status on the communities they serve and (2) the degree to which the community-benefit spending they offer serves local communities. Using economic impact analysis, the authors construct heuristic models that estimate the economic and tax benefits of nonprofit hospitals’ operations in four small and medium-sized metro regions. The estimates find that overall tax revenues disproportionately flow to state and federal levels of government, while the costs of tax exemptions disproportionately fall on local and regional levels of government. Additionally, forms of community benefit spending that are frequently criticized, such as uncompensated means-tested care, are found to be important forms of regional investment. The authors conclude by highlighting workforce development as a pathway to improving nonprofit hospitals’ community relationships.

Suggested Citation

  • Donald A. Planey & Arrianna Marie Planey & Stephen A. Sherman & Hillary K. Hecht & George M. Holmes, 2025. "Assessing the Tax Impacts and Community Benefits of Nonprofit Hospitals with IMPLAN," Economic Development Quarterly, , vol. 39(3), pages 182-195, August.
    • Handle: RePEc:sae:ecdequ:v:39:y:2025:i:3:p:182-195
    DOI: 10.1177/08912424251320621
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/08912424251320621
    Download Restriction: no
    File URL: https://libkey.io/10.1177/08912424251320621?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christelle Khalaf & G. Jason Jolley & Candi Clouse, 2022. "The Economic Impact of Small Colleges on Local Economies: A Guide to Attainable Data and Best Practices," Economic Development Quarterly, , vol. 36(1), pages 17-32, February.
    2. Cory S. Capps & Dennis W. Carlton & Guy David, 2020. "Antitrust Treatment Of Nonprofits: Should Hospitals Receive Special Care?," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1183-1199, July.
    3. Clouse, Candi & Thorvaldson, Jenny & Jolley, G. Jason, 2023. "Impact Factors: Methodological Standards for Applied Input-Output Analysis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tuyen Pham & Clara Bone & G. Jason Jolley, 2024. "Assessing the Economic Impacts of Sustainable Energy: An Analysis of Ohio’s Community Solar Program," Sustainability, MDPI, vol. 16(21), pages 1-17, October.
    2. Michele Fioretti, 2022. "Caring or Pretending to Care? Social Impact, Firms' Objectives, and Welfare (former title: Social Responsibility and Firm's Objectives)," Sciences Po Economics Discussion Papers hal-03393065, HAL.
    3. Tuyen PHAM, 2024. "Catalyzing Economic And Environmental Insights: Applications Of Implan'S Environmentally Extended Input-Output (Eeio) Modeling For Energy Production Scenarios," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 99-106, June.
    4. Clouse, Candi & Thorvaldson, Jenny & Jolley, G. Jason, 2023. "Impact Factors: Methodological Standards for Applied Input-Output Analysis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), September.
    5. Nathan E. Wilson, 2021. "The Impact of Competition on Investment: Evidence From California Hospitals," Journal of Industrial Economics, Wiley Blackwell, vol. 69(1), pages 1-32, March.
    6. Johannes S. Kunz & Carol Propper & Kevin E. Staub & Rainer Winkelmann, 2024. "Assessing the quality of public services: For‐profits, chains, and concentration in the hospital market," Health Economics, John Wiley & Sons, Ltd., vol. 33(9), pages 2162-2181, September.
    7. Cho, David D. & Stauffer, Jon M., 2022. "Tele-medicine question response service: Analysis of benefits and costs," Omega, Elsevier, vol. 111(C).
    8. Rabbani, Maysam, 2021. "Mergers with Future Rivals Can Boost Prices, Intensify Market Concentration, and Bar Entry," MPRA Paper 112864, University Library of Munich, Germany, revised 26 Apr 2022.
    9. Rabbani, Maysam, 2023. "Mergers with future rivals can boost prices, bar entry, and intensify market concentration," International Journal of Industrial Organization, Elsevier, vol. 88(C).
    10. Owsley, Kelsey M. & Lindrooth, Richard C., 2022. "Understanding the relationship between nonprofit hospital community benefit spending and system membership: An analysis of independent hospital acquisitions," Journal of Health Economics, Elsevier, vol. 86(C).
    11. Paul Goldsmith-Pinkham & Maxim Pinkovskiy & Jacob Wallace, 2020. "Medicare and the Geography of Financial Health," Working Papers 2020-004, Human Capital and Economic Opportunity Working Group.
    12. Propper, Carol & Kunz, Johannes & Staub, Kevin & Winkelmann, Rainer, 2020. "Assessing the Quality of Public Services: Does Hospital Competition Crowd Out the For-Profit Quality Gap?," CEPR Discussion Papers 15045, Centre for Economic Policy Research.
    13. Esra Eren Bayindir & Jonas Schreyögg, 2021. "What drives different treatment choices? Investigation of hospital ownership, system membership and competition," Health Economics Review, Springer, vol. 11(1), pages 1-14, December.
    14. Antonio Estache & Ardit Litaj, 2023. "Is Private Equity Good for Health? Regulation and Competition Policy Lessons from a Survey of the Evidence," Working Papers ECARES 2023-01, ULB -- Universite Libre de Bruxelles.
    15. Shaun M. Dougherty & Wei Gao, 2026. "Sector, Religious Affiliation, and the Risk of Closure Among Postsecondary Institutions," Research in Higher Education, Springer;Association for Institutional Research, vol. 67(2), pages 1-36, March.
    16. Maysam Rabbani, 2021. "Non-profit hospital mergers: the effect on healthcare costs and utilization," International Journal of Health Economics and Management, Springer, vol. 21(4), pages 427-455, December.
    17. Atul Gupta & Sabrina T Howell & Constantine Yannelis & Abhinav Gupta, 2024. "Owner Incentives and Performance in Healthcare: Private Equity Investment in Nursing Homes," The Review of Financial Studies, Society for Financial Studies, vol. 37(4), pages 1029-1077.
    18. Arzi Adbi & Ajay Bhaskarabhatla & Chirantan Chatterjee, 2020. "Stakeholder Orientation and Market Impact: Evidence from India," Journal of Business Ethics, Springer, vol. 161(2), pages 479-496, January.
    19. Paul Goldsmith-Pinkham & Maxim L. Pinkovskiy & Jacob Wallace, 2020. "The Great Equalizer: Medicare and the Geography of Consumer Financial Strain," Staff Reports 911, Federal Reserve Bank of New York.
    20. David Kay & G. Jason Jolley, 2023. "Using input–output models to estimate sectoral effects of carbon tax policy: Applications of the NGFS scenarios," American Journal of Economics and Sociology, Wiley Blackwell, vol. 82(3), pages 187-222, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:39:y:2025:i:3:p:182-195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.