For Minnesota’s nonprofit hospitals and health systems, community benefit is not a compliance obligation or reporting exercise — it is core to who they are.
A new analysis of community impact data from more than 120 Minnesota nonprofit hospitals and health systems shows they delivered $6.5 billion in community benefit in fiscal year 2024 — a 5% increase year over year — even as hospitals face historic financial pressure and historic cuts to federal programs.
“Community benefit is not something nonprofit hospitals are required to do — it is why we exist,” said Dr. Rahul Koranne, president and CEO of the Minnesota Hospital Association. “Long before any formal reporting requirements, Minnesota’s hospitals were caring for people, regardless of their ability to pay, as well as supporting public health and strengthening their communities.”
Highlights of this year’s Community Impact Report findings include:
- $953 million in charity care and medical debt that patients simply could not pay, also known as uncompensated care.
- Charity care alone grew 40% to $342 million.
- $1.46 billion in care for Medicaid patients that were not reimbursed by the state or federal government.
- $1.9 billion in care for Medicare patients that were not covered by the federal government or Medicare Advantage insurers.
Other outlays included provider taxes paid to the state, community supports and public health programs.
“This community impact work depends on hospitals being financially sustainable. Significant Medicaid cuts are coming soon, and underfunding health care doesn’t just strain hospitals — it directly threatens the community investments Minnesotans rely on every day,” Koranne said.
The annual MHA Community Impact Report provides a comprehensive look at how Minnesota’s hospitals and health systems invest in their communities. It is based on voluntarily reported financial data, IRS 990 Schedule H reporting, and data from the Minnesota Department of Health. See examples of how Minnesota hospitals are impacting their communities here.
