Tax-exempt hospitals are not putting their patients first



There is something seriously wrong with American health care. Rising costs mean that Americans now pay nearly twice as much as people in similar countries, without getting better outcomes. “It’s complicated,” say those who want to keep prices high and rising. But some of it is simple, as my organization is showing with research on hospital systems like Cleveland Clinic.

Hospital executives are leading luxurious lifestyles while claiming that every dollar spent — on television commercials, Abu Dhabi real estate, or modern art — is 'health care.'

A longtime household name, Cleveland Clinic presents itself as an altruistic institution focused on health and patients. As a tax-exempt corporation, everything Cleveland Clinic does is subsidized by taxpayers, and it receives many other direct and indirect benefits in the interest of public health. Yet it pays executives millions, has massive holdings overseas, and maintains a collection of fine art.

Why are your health care bills and insurance premiums going up? Why is government spending and borrowing more and more to subsidize care? Look no farther than the misplaced priorities of profit-maximizing “nonprofit” hospitals like Cleveland Clinic.

Recent news has exposed massive waste and fraud against taxpayers in places like Minnesota, California, and Washington state. Yet the problem is deeper and more systemic. Rooting out actual theft is essential. So is confronting waste and abuse, especially within large health care institutions.

Last month, Save Our States launched a campaign calling out a massive hospital system run by the University of Miami. While its transplant center was failing, hospital executives were focused on building a lavish new lobby and expanding into Abu Dhabi.

Our new exposé on Cleveland Clinic found surprisingly similar luxury expenses. It has an in-house art museum, for example, boasting a "world-renowned collection" of nearly 7,000 pieces of contemporary art. Like many hospitals, it spares no expense on public relations and advertising — Cleveland Clinic even ran its own Super Bowl ad.

The clinic pays millions in executive salaries. Those executives are planning a massive new sports center with the Cleveland Cavaliers, to go along with their fancy foreign facilities in places like London, Toronto, and — once again — Abu Dhabi.

How do these expenses benefit American patients? And why should taxpayers subsidize any of it?

Some medical providers do pay taxes. A doctor with an independent practice gets taxed like any other business. But sell that practice to a tax-exempt hospital, even one with billions in revenue, and suddenly it becomes tax-exempt. At the same time, hospital-owned practices often start adding “hospital facility fees” on top of regular bills.

They charge patients more for the same services, then pay less in taxes. No wonder massive hospital systems buy up smaller practices and facilities. These are policy choices, not market forces, driving consolidation in health care. The result is lower quality, higher prices, and misplaced priorities.

RELATED: America has a spending problem Congress refuses to fix

DNY59/Getty Images

For many Americans, the rising prices go first to their insurance, later showing up in rising premiums and lower take-home pay. And all Americans see the cost in taxes. Everyone pays somehow, in higher costs, less access to care, or both.

Meanwhile, hospital executives are leading luxurious lifestyles while claiming that every dollar spent — on television commercials, Abu Dhabi real estate, or modern art — is “health care.”

During its spending spree, Cleveland Clinic has faced allegations of deceptive billing, accusations of overcharging patients, reports of underpaying nurses, and stories of medical debt lawsuits brought against its own patients.

Our new site, ClevelandClinicBetrayedPatients.com, documents the misplaced priorities of this massive, taxpayer-supported hospital system.

Given that Cleveland Clinic is in Vice President JD Vance's home state of Ohio, hopefully he can make it a focus of his new appointment by President Trump to lead the “war on fraud.” The vice president and congressional leaders need to scrutinize spending at all subsidized hospitals — starting with the biggest.

The question is not: “Does it do some good somewhere?” One good program does not justify waste elsewhere. The question is: “Are any taxpayer dollars subsidizing waste, abuse, or unnecessary extravagance?”

Americans need health systems that respect taxpayers and put patients first. More than anything, we need the kind of competition that creates accountability, demands transparency, fosters innovation, and produces better services at lower prices.

Exclusive: Good Government Group Demands IRS Probe SPLC’s Tax-Exempt Status Over Left-Wing ‘Political Activity’

'Based on the above allegations and the evidence provided in support; we believe that the American people are entitled to a full investigation into this urgent matter.'

Lawsuit Aims To Prevent IRS From Targeting Conservative Groups Ever Again

When the IRS was exposed for targeting conservatives in 2013, the policies to blame remained in place, leaving the door open to more weaponization.

Congress Should Strip Tax Exemptions From All Woke Nonprofits, Not Just Harvard

Leftist non-profits should lose their tax-exempt status. And there’s a very easy way to do it: all of them have DEI departments.

Meet The Tax-Exempt ‘Charity’ Secretly Bankrolling Democrats’ Get-Out-The-Vote Operations

A new report details how the Voter Registration Project uses millions of dollars from left-wing billionaires to register likely-Democrat voters.

IRS Must Look Into Tax Breaks Zuckerberg Received For 2020 Election Meddling, Complaint Says

A conservative think tank is asking the IRS to investigate Mark Zuckerberg and several left-wing nonprofits' roles in the 2020 election.

Virginia churches air Kamala Harris endorsement of Terry McAuliffe in apparent violation of federal law



Vice President Kamala Harris is being accused of helping Virginia churches break federal law prohibiting tax-exempt churches from engaging in overt political activity.

What is Harris doing?

More than 300 "black churches" across Virginia will reportedly view a pre-recorded message from Harris over the next several weeks urging them to vote for Democrat Terry McAuliffe in the upcoming Virginia gubernatorial election.

According to CNN reporter Eva McKend, the message began airing Sunday and will be continue to be broadcasted through Nov. 2. The message "will air during morning services as part of outreach effort aimed to boost @TerryMcAuliffe," McKend reported

NEW -- More than 300 Black churches across VA will hear from @KamalaHarris btwn Sun. and November 2 in video messag… https://t.co/Js6QXX3STk

— Eva McKend (@evamckend) 1634425134.0

In her message, Harris does not hide her endorsement of McAuliffe. Not only does she urge parishioners to "vote after today's service," but Harris tells church-goers that, "I know that you will send Terry McAuliffe back to Richmond."

What is the problem with Harris' message?

The explicitly political message, which certainly endorses a political candidate, seemingly violates the Johnson Amendment.

The Internal Revenue Service explains:

In 1954, Congress approved an amendment by Sen. Lyndon Johnson to prohibit 501(c)(3) organizations, which includes charities and churches, from engaging in any political campaign activity. To the extent Congress has revisited the ban over the years, it has in fact strengthened the ban. The most recent change came in 1987 when Congress amended the language to clarify that the prohibition also applies to statements opposing candidates.

Currently, the law prohibits political campaign activity by charities and churches by defining a 501(c)(3) organization as one "which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office."

The IRS further explains that tax-exempt organizations that violate the law are subject to losing their tax-exempt status.

Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.

Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.

Tax-exempt organizations, however, are permitted to engage in "certain voter education activities" and "other activities intended to encourage people to participate in the electoral process" so long as they are "conducted in a non-partisan manner." Harris' message clearly goes beyond such permitted activity.

Anything else?

White House press secretary Jen Psaki appeared to skirt the Hatch Act last week when she seemingly endorsed McAuliffe during a press briefing from the White House.

Citizens for Responsibility and Ethics in Washington has filed an ethics complaint over Psaki's remarks.

Senate Republicans Propose IRS Rule To Prevent Repeat Of 2013 Obama Tax Scandal

More than 40 Senate Republicans proposed the "Don't Weaponize the IRS Act" Thursday, to prevent a repeat of the Obama IRS targeting scandal.