Nonprofit Hospitals - Community Benefits

HB 1136 requires most nonprofit hospitals in Maryland to provide annual community benefits equal to either 100% of their tax-exempt value or 5% of net patient revenue (if charity care meets a 4% minimum). Hospitals must report their compliance to the Health Services Cost Review Commission within 120 days after their fiscal year ends. Starting in 2028, the Commission will annually report non-compliant hospitals to the Attorney General and Comptroller, who can revoke a hospital’s tax-exempt status for the next tax year if it fails to meet requirements. Hospitals may correct unintentional errors by providing the missing benefits. This applies to all nonprofit hospitals except those in counties with fewer than 50,000 residents.