Chicagoland hospitals are getting up to three times more money in tax exemptions than they give in charity care, according to a report released on April 10.

The Center for Tax and Budget Accountability issued the report, which estimated hospitals received $498.5 million in tax exemptions for charity care and only provided $175.7 million for their patients.

“The information comes from financial data reported by the hospitals in the community development report to the state of Illinois and [their] financial statement,” said Heather O’Donnell, the report’s author.

The report was an update from 2006 that found similar data, O’Donnell said.

The Illinois Hospital Association disagrees with the CTBA report. The IHA is denouncing the results, and spokesperson Danny Chun said the report is completely false.

“[CTBA’s] assumption was wrong, their methodology was wrong and their data was wrong,” Chun said.

Chun said 2008 data was available and the CTBA used  old and inaccurate information. Also, according to a statement released by the IHA, they’ve increased charity care 35 percent since 2008.

O’Donnell said the data was not available when she started the report a year ago.

“It is quite confusing, but the IHA is dead wrong,” O’Donnell said. “The IHA is ignoring the law.”

O’Donnell said the Illinois Supreme Court defines “charity care” as “discounted care for those who cannot afford care.”

She said the IHA and hospitals have the standard wrong. Only property and sales tax exemption are charity care, she said.

In the state of Illinois, several things qualify as a tax exemption for a hospital. The list, according to the IHA, is called the Community Development List and is  defined by the Community Development Act. The list includes not only charity care, but shortfalls in Medicare and Medicaid spending, bad debt from patients, education for  future doctors, research, money-losing services (ER,  ambulance services) and donations.

Chun said these need to be included in the hospitals’ report too, and charity care is only a small portion of all community development services.

According to a 2008 report released by the IHA, hospitals’ community development for 2006 to 2007 was $4.3 billion. The CTBA report did not find this data.

While O’Donnell said hospitals have increased charity since the original report, she said the law pertaining to tax exemptions doesn’t include other aspects of the  Community Development Law.

“The legal standard for property and sales tax exemptions is charity care only,” O’Donnell said. “The IHA is incorrect when it says community benefit is the standard for the tax exemptions.”

Attorney General Lisa Madigan released a statement April 10 stating hospitals need to work harder to provide charity care.

“Charity care programs are a critical way for hospitals to serve their communities and provide access to health care for thousands of poor or low-income families,” Madigan said in the statement. “[The CTBA] analysis underscores the continuing importance of the issue.”