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IRS issues report on hospital community benefit

By Richard Pizzi

The Internal Revenue Service has released a final report on its 2006 survey of not-for-profit hospitals, which found the nearly 500 hospitals surveyed dedicated an average 9 percent of total revenues to community benefit.

The report warned that attempts to set a percentage threshold for determining compliance with community benefit "could have disproportionate impacts on hospitals, depending upon their size, where they are located, their community benefit mix, and other hospital and community demographics."

The survey also examined executive compensation practices and found nearly all salaries surveyed were "within the range of reasonable compensation."