The State of Connecticut defines hospitals’ community benefit programs in Connecticut General Statutes (C.G.S.) §19a-127k as “any voluntary program or activity to promote preventive health care, protect health and safety, improve health equity and reduce health disparities, reduce the cost and economic burden of poor health and improve the health status for all populations within the geographic service areas of a hospital.”

Nonprofit hospitals are charitable, tax-exempt organizations, and make up 80% of hospitals in Connecticut. Pursuant to 501(c)(3) and 501(r) of the Internal Revenue Code (IRC), hospitals may be relieved of paying federal corporate income taxes, and instead provide community benefit. Moreover, the State of Connecticut relieves federally recognized nonprofit entities of State corporate income taxes, local sales taxes, and local property taxes pursuant to C.G.S. §Chapter 208 12-214(2)(B) and Chapter 219 section 12-412(8).  In addition to these tax benefits, hospitals receive indirect benefits from their nonprofit status, including nontaxed financial contributions from individuals, and tax discounts on bonds. C.G.S. §19a-127k assigns OHS to oversee nonprofit and for profit hospitals’ community benefit program reporting requirements:

1. The tri-annual Community Health Needs Assessment and Implementation Strategy.
2. Reports related to the hospital’s Community Health Needs Assessment (CHNA) and Implementation Strategy.
3. An annual status report from the hospital.

In turn, OHS will produce a summary and analysis report open for public comment, identify and determine stakeholders that could assist in addressing identified community health needs and whether to make recommendations to the Department of Public Health in the development of the State Health Plan, and make available the All-Payers Claim Database (APCD) for hospitals’ community benefit programs.

Learn more about Community Benefits here.