Report 2011-126 Recommendation Responses

Report 2011-126: Nonprofit Hospitals: Statute Prevents State Agencies From Considering Community Benefits When Granting Tax-Exempt Status, While the Effects of Purchases and Consolidations on Prices of Care Are Uncertain (Release Date: August 2012)

Recommendation for Legislative Action

If it expects each nonprofit hospital to follow a standard methodology for calculating the community benefits it delivers, the Legislature should either define a methodology in state law or direct Health Planning to develop regulations that define such a methodology.

Description of Legislative Action


  • Legislative Action Current As-of: February 2014

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Proposed But Not Enacted

AB 975 (Wieckowski, 2013) would have defined the terms Community Benefits and Charity Care, require private nonprofit hospitals and nonprofit multi-specialty clinics to develop a community benefits statement, community needs assessment and community benefits plan, and require the Office of Statewide Health Planning and Development to develop and adopt regulations to prescribe a standardized format for community benefits plans.

All Recommendations in 2011-126