What is community benefit?
Community benefit programs or activities provide treatment or promote health and healing in response to an identified community need. A community benefit must meet at least one of the following criteria:
- Generates a low or negative margin
- Responds to needs of special populations
- Supplies services or programs that would probably not exist--or would need to be provided by another not-for-profit or government provider--if offering the service or program depended upon financial resources
- Responds to public health needs
- Involves education or research that improves overall community benefit
How do we know what the community needs?
Every three years, Dayton Children’s conducts its community health needs assessment to identify child health concerns in the community. The pediatric experts at Dayton Children’s use these findings to target resources toward the most pressing child health issues such as obesity, dental health and asthma.
Why is a community benefit report needed?
The federal government through the Internal Revenue Service (IRS) offers hospitals that are organized and operated for charitable purposes a not-for-profit status with exemption from federal income tax. For hospitals such as Dayton Children’s to qualify for this tax exemption, we must demonstrate that we provide measurable and targeted community benefit.
What other factors does the IRS consider?
The following are some of the factors the IRS considers. Dayton Children's meets all of these criteria:
- Operating a full-time emergency department
- Providing non-emergency services to Medicare and Medicaid recipients
- Having oversight from a board of trustees that included independent civic leaders
- Providing medical training, education and research programs
- Offering a formal charity care policy
Nationally, the majority of medical centers are not-for-profit, including top academic hospitals. The not-for-profit status allows Dayton Children's to focus on our mission and meeting the needs of the community we serve--not stockholders.