Report 2011-126 All 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 the Legislature intends for nonprofit hospitals' tax-exempt status under state law to depend on the amounts of community benefits they provide, it should consider amending state law to include such requirements.

Description of Legislative Action

N/A

  • Legislative Action Current As-of: February 2014

California State Auditor's Assessment of Annual Follow-Up Status: Unknown


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

N/A

  • 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.


Recommendation for Legislative Action

If the Legislature intends to ensure compliance of all hospitals required to submit community benefit plans to Health Planning, it should consider revising state law to allow Health Planning to assess a penalty to those hospitals that do not comply.

Description of Legislative Action

N/A

  • Legislative Action Current As-of: February 2014

California State Auditor's Assessment of Annual Follow-Up Status: Unknown


All Recommendations in 2011-126

Agency responses received after June 2013 are posted verbatim.


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