Intermountain Health CEO: Better communication can help restore faith in nonprofit hospitals
As public trust in traditional health care systems declines, nonprofit providers must better emphasize how they reinvest them into the communities they serve, one health system CEO said.
Intermountain Health CEO Rob Allen operates 33 hospitals and over 400 clinics in six states in Intermountain West – believes this can help rebuild Americans’ trust in health care, especially given that most hospitals in the country are nonprofits.
He cites a recent Yale University study that found that 95% of for-profit hospital profits have been handed over to shareholders over the past 20 years, while non-for-profit hospital revenue has been reinvested into the community.
“Every cent we generate will eventually return to the community,” Allen said in an interview earlier this summer. “If [nonprofit healthcare] Frankly, walking away will lead to the ability to get access to care and a huge burden on the government to fund many things supported by systems like Intermountain. ”
Allen pointed out that there is a misunderstanding that nonprofit hospitals do not pay taxes. He noted Intermountain paid $469 million in taxes, including wages and property taxes in 2023, and the health system is estimated to receive an estimated $362 million in tax exemption.
In return, Intermountain provides $746 million in direct community work. This includes $220 million in charitable care, while the rest is invested in wider community investments such as housing and food security.
For example, Intermountain helped fund the creation of more than 2,000 affordable housing through low-return investments in its balance sheet. Allen said the health system invests millions of dollars in affordable housing, food access and transportation, because these needs, while non-medical, have a huge impact on health outcomes.
He noted that Intermountain interacts with local community members every three years to determine its highest health priorities. This process is essential to guide community investment in the health system because it ensures that services and resources are tailored to local needs.
Over time, regulations have been developed to measure how nonprofit healthcare organizations meet their community obligations, especially in exchange for tax benefits. IRS Form 990 Schedule H is the current tool to track and report this work.
Allen believes that submitting this form is not enough. He believes Intermountain and other nonprofit providers must figure out how to raise public awareness about community reinvestment.
“When people need us, they should have the confidence to count on us,” Allen declared.
Photo: Viktor Cvetkovic, Getty Images
