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January 24, 2024
Media Contact: Erica Heartquist, erica.j.heartquist@oha.oregon.gov, 503.871.8843
First Hospital Community Benefit Spending Floor Data Released
The Oregon Health Authority (OHA) released its first ever hospital community benefit spending floor data for the Fiscal Year (FY) 2022. The data shows how much individual hospitals and health systems spent on community benefit in comparison to their individually assigned spending floors. The data show 92% of hospitals and health systems in the state met or exceeded their spending floor.
Oregon House Bill 3076 created the hospital community benefit spending floor program in Oregon, the first of its kind in the nation. In lieu of paying income or property taxes, Oregon nonprofit hospitals are expected to provide support to their communities over and above direct medical care, which is called Community Benefit.
The new program was designed to set spending floors and the minimum amount of money that a hospital or health system is expected to spend on Community Benefit within a fiscal year, as well as collect and report on related data.
“The program is the first in the nation to set individual community benefit spending floors for individual hospitals or hospital systems within a state. OHA worked with Oregon hospitals, patient advocates and national experts to develop the spending floor formula and the data collection aspects of the program, which will help advance transparency and public awareness,” said Trilby de Jung, Deputy Director of Health Policy and Analytics at Oregon Health Authority. “We appreciate the energy our partners brought to the table to launch this important work, particularly since the legislative timeline called for collaboration on the heels of the COVID-19 pandemic.”
The spending floor formula draws upon hospitals’ previous community benefit spending to predict the floor for future spending. The floor is made up of hospital unreimbursed care and direct spending on programs, community organizations and other activities in hospitals’ communities.
The total community benefit spending was more than1.5 times the total spending floor in its first year. The total statewide spending floor for FY 2022 was $1,386,260,083 and total hospital community benefit spending statewide was $2,198,600,815.
Statewide, hospitals met their spending floors largely through unreimbursed care, which accounted for 80% of all community benefit spending. Direct spending in communities made up the remaining 20% of total community benefit spending.
Here is the link to the report:
https://www.oregon.gov/oha/HPA/ANALYTICS/HospitalReporting/FY22%20Community%20Benefit%20Report.pdf
Here is a link to the dashboard:
https://visual-data.dhsoha.state.or.us/t/OHA/views/CommunityBenefitDashboard/Dash-Welcome?%3Aembed=y&%3AisGuestRedirectFromVizportal=y
OHA will publish a new report in February that takes a closer look at the notable programs, activities and investments hospitals made to benefit their local communities.
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