Ge Bai testifying in Congress on 9/16/2025. House Ways and Means Committee

Congress is deeply interested in ensuring that nonprofit hospitals do the right thing for their communities. These hospitals have an implicit contract with taxpayers: they advance charitable missions for the community, and in return, taxpayers exempt them from income, property, sales, and other taxes. My coauthored study , published in JAMA, shows that total tax savings reached $37.4 billion in 2021, with more than half coming from state and local governments.

Money borrowed at low, tax-exempt interest rates allows nonprofit hospitals to invest without paying taxes on returns. Our forthcoming Tax Notes study shows that they held nearly half a trillion dollars in investment assets, issued $180 billion in

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