Massachusetts Health & Hospital Association

A First: Massachusetts Hospitals’ Community Benefits Eclipse $1 Billion

Quotation marks with an EKG symbol

The programs help address social determinants of health and advance patients’ wellbeing
in the places where they live, work, and play

BURLINGTON, MA – July 15, 2024 – For the first time, Massachusetts hospitals’ community benefits investments topped $1 billion over the course of a single fiscal year. The findings, which cover community funding for FY2023, were recently released by Attorney General Andrea Campbell.   

Massachusetts hospitals are renowned for the lifesaving, compassionate care they deliver each day for patients and families. What receives less attention, but is of vital importance to public health, are the activities they fund outside their walls to support people’s wellbeing in the places where they live, work, and play.

These investments – known as “community benefits” programs – address specific health concerns and disparities identified in collaboration with trusted local partners, ranging from faith-based organizations to schools, first responders, and advocacy groups. Programs are provided at no cost to the populations being served and are not reimbursed by government entities or insurance companies.

In fiscal year 2023, local hospitals devoted $1.03 billion to local community benefits programs – a 14% increase from FY22. These investments continued to grow even as the hospital community struggled with severe financial losses and well-documented financial instability – pressures that still persist today.

Community benefits programs are brought to life in every corner of society. They are seen in public schools and senior centers. They permeate neighborhoods in mobile health vans and farmer’s markets, through job fairs and health screenings, and in programs that address substance use disorder, violence prevention, and LGBTQ rights.

“Community-based programs are a central aspect of fostering health and wellbeing, particularly for those with mental and behavioral health concerns,” said Attorney General Andrea Joy Campbell. “My office and I will continue to spotlight the critical investments of our hospitals and HMOs, which help expand health access and equity and meaningfully address the needs of communities across the Commonwealth.”

As the hospital-funded programs lift up one section of society, their positive results reverberate throughout entire communities and affect generations. For example, hospital-based outreach to improve housing quality can reduce asthma rates in children, which improves school scores, which lowers hospital admissions and healthcare costs – and so on.

Hospitals detail their specific community outreach efforts in annual reports to the Massachusetts Office of the Attorney General in addition to submitting information to the Internal Revenue Service as required by the Affordable Care Act. Examples of hospital-specific programs can be accessed through the Attorney General’s webpage or by contacting the Massachusetts Health & Hospital Association.

“There isn’t another sector that steps up for its communities more than our local hospitals, especially under the most challenging of circumstances,” said Steve Walsh, president and CEO of the Massachusetts Health & Hospital Association. “These investments embody our hospitals’ commitment to leading on community-based health, closing pervasive disparities, and being a part of their patients’ everyday lives. We are grateful for Attorney General Campbell’s guidance through every step of this process as we continue to address the real-time needs of people in every neighborhood of the Commonwealth.”

Hospitals’ community benefit investments are separate and distinct from their $165 million annual investment in the Health Safety Net fund, which covers care for uninsured and underinsured patients in Massachusetts. Hospitals and health insurance companies pay an equal amount to fund the Health Safety Net, but hospitals are solely responsible for any funding shortfall.  The Health Safety Net shortfall is expected to exceed $210 million in FY2024.

Hospitals will be filing their FY2024 community benefits report in spring of 2025. Read more about hospital community benefits at mhalink.org.