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Case Studies:
Dayton
Dayton General
Hospital
Newport
Newport Community
Hospital
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Hospitals do not just provide jobs, they support the economy
by paying taxes, licensing fees, and providing uncompensated
community benefits. The large majority of hospitals in Washington
state are nonprofit, which allows them to qualify for certain
tax exemptions. In spite of their tax exemptions, hospitals
pay a considerable amount in taxes. In fiscal year 2000, 36
urban hospitals paid over $360 million in certain federal, state,
and local taxes. In 1999, Washington state hospitals paid over
$4.9 million in licensing fees.
Hospitals also provide support to the community by providing
community services and caring for uninsured persons. In fiscal
year 2000, for example, 36 urban nonprofit hospitals provided
$64 million in charity care, $79 million in unreimbursed costs
to deliver care to Medicaid patients, and $72 million in community
services, for a total of $215 million. Community services
provided include community health education, health screenings,
support groups, health profession education, and others.
Key to Community Survival
In rural areas, the local hospital is often a key to the
community’s survival. Rural hospitals and physician
practices have a particularly strong effect on their local
communities. The economic impact of closing a rural hospital
or losing a rural physician practice is quite devastating.
Impacts include significant losses in jobs, income to the
community, retail sales, and tax collections.
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