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House Oversight Subcommittee Targets Tax-Exempt Hospitals

The U.S. Capitol
Elijah Mears, Unsplash
September 25, 2025

On September 16th, the Oversight Subcommittee of the U.S. House Ways & Means Committee held a hearing titled Virtue Signaling vs. Vital Services: Where Tax-Exempt Hospitals are Spending Your Tax Dollars. Perhaps not surprisingly given that title, the testimony provided at the hearing was almost completely critical of tax-exempt nonprofit hospitals, including allegations of failures to clearly disclose community benefits, departures from the primary mission of caring for needy patients and improving quality of care, and improper pursuit of DEI and other purportedly improper goals, as summarized in a post-hearing press release. The only more favorable testimony, which highlighted the positive role nonprofits play in providing hospital care, including providing a different mix of services as compared to for-profit hospitals, came from Professor Jill Horwitz (Northwestern). The American Hospital Association also submitted a statement in advance of the hearing. Coverage: Fierce Healthcare.