/ en Wed, 30 Apr 2025 22:43:00 -0500 Wed, 06 Nov 24 16:00:00 -0600 /legal-documents/2024-11-06-american-hospital-association-2023-irs-form-990 <div class="container"><div class="row"><div class="col-md-8"><h2 class="text-align-left">Public Disclosure Copy</h2><h3 class="text-align-left">黑料正能量 Association IRS Form 990</h3><div class="external-link spacer"><a class="btn btn-wide btn-primary" href="/system/files/media/file/2024/11/2023-AHA-Form-990-Public-Disclosure-Copy.pdf" target="_blank" title="黑料正能量 Association 2023 IRS Form 990 Public Disclosure Copy PDF">Download the Complete AHA 2023 IRS Form 990</a></div></div><div class="col-md-4"><div class="panel module-typeC"><div class="panel-heading"><h3 class="panel-title">AHA IRS Form 990 from Previous Year</h3></div><div class="panel-body"><ul><li><a href="/system/files/media/file/2023/11/American-Hospital-Association-2022-IRS-Form-990.pdf">2022</a></li></ul></div></div></div></div><div class="row"><div class="col-md-8"><p> </p></div></div></div> Wed, 06 Nov 2024 16:00:00 -0600 Financial/Philanthropic /guidesreports/2023-04-19-essential-role-financial-reserves-not-profit-healthcare <div class="container"> <div class="row"> <div class="col-md-8"> <h2>Introduction</h2> <p>Anyone unfamiliar with the financial structure of not-for-profit hospitals and health systems may question why these organizations carry often significant financial reserves on their balance sheets. The answer is straightforward: with limited sources of funding, hospitals and health systems rely on financial reserves to maintain their financial stability and support their growth. These reserves ensure that hospitals and health systems can continue to serve their communities through good times and bad and can continue to invest in the highly skilled professionals and lifesaving technologies that define modern healthcare.</p> <p>Not-for-profit hospitals and health systems have essentially two sources of funding: they either earn revenue from operations and investments (providing patient services makes up most of this revenue) or they borrow funds through issuance of debt in the bond markets or other forms of borrowing (e.g., bank lines of credit).<sup><a href="#fn1">1</a></sup> Unlike for-profit organizations, they do not have access to equity markets. Also, unlike for-profit organizations, they are not obligated to shareholders who expect that excess funds will be distributed as dividends. Instead, not-for-profit hospitals and health systems have an obligation to their mission and the communities they serve, and strong financial reserves help ensure that they can meet this obligation even in times of operational disruption and financial distress.</p> <p>The importance of financial reserves was demonstrated over the course of 2022, when year-to-date median operating margins for not-for-profit hospitals and health systems remained in negative territory throughout the year (<a href="#figure1">Figure 1</a>). This means that more than half of the hospitals providing data for Kaufman Hall鈥檚 monthly <a href="https://www.kaufmanhall.com/insights/research-report/national-hospital-flash-report-february-2023" target="_blank" title="Kaufman Hall: National Hospital Flash Report: February 2023">National Hospital Flash Report</a> ended the year with negative operating margins, and have not seen an improvement as they move into 2023. Net losses in 2022 for some of the nation鈥檚 largest not-for-profit health systems were well above $1 billion and in some cases approached $2 billion. These losses were driven by multiple factors, including ongoing operational disruptions related to the COVID-19 pandemic, staffing shortages that limited the ability to run operations at full capacity, rapidly escalating costs for supplies and鈥攅specially鈥攍abor (including the heightened use of expensive contract labor to help ease staffing shortages), and investment losses.</p> <hr> <h3 id="figure1">Figure 1: Kaufman Hall Operating Margin Index (Year-to-Date by Month), February 2022 鈥揓anuary 2023</h3> <p><img alt="Figure 1: Kaufman Hall Operating Margin Index (Year-to-Date by Month), February 2022 鈥揓anuary 2023. February 2022: -3.6%. March 2022: -2.4%. April 2022: -2.8%. May 2022: -2.1%. June 2022: -1.0%. July 2022: -1.3%. August 2022: -0.8%. September 2022: -0.8%. October 2022: -0.7%. November 2022: -1.0%. December 2022: -0.7%. January 2023: -1.0%." data-entity-type="file" data-entity-uuid="ad9fccc5-1bab-4aec-a848-d3a9c352cb2e" src="/sites/default/files/inline-images/Figure-1-Kaufman-Hall-Operating-Margin-Index-February-2022-January-2023.png" width="830" height="310"></p> <p><small>Source: Kaufman Hall, <em>National Hospital Flash Report,</em> February 2023</small></p> <hr> <p>With no immediate end in sight to the operational and financial pressures hospitals and health systems are facing, organizations will have to rely on their financial reserves to carry them through until conditions improve, or until organizations can adapt to a potential new reality of decreased revenue and increased expenses.</p> <blockquote> <h4>Not-for-profit hospitals and health systems have an obligation to their mission and the communities they serve, and strong financial reserves help ensure that they can meet this obligation even in times of operational disruption and financial distress.</h4> </blockquote> <p>This report looks, first, at the primary functions within the financial structure of not-for-profit hospitals and health systems and the role these functions play in generating financial reserves. It then looks at the significance of financial reserves in credit management efforts and in serving as a buffer in times of operational disruption or financial distress.</p> <div class="panel module-typeC"> <div class="panel-heading"> <h3 class="panel-title">Key Findings from the Report</h3> </div> <div class="panel-body"> <ul> <li>With limited sources of funding, not-for-profit hospitals and health systems rely on financial reserves to withstand periods of operational disruption or financial distress and continue to provide services to their communities.</li> <li>Most not-for-profit organizations maintain financial reserves to make needed investments and pursue their mission in difficult times. In the closely related not-for-profit sector of higher education, for example, financial reserves often surpass those that are held by hospitals and health systems.</li> <li>Strong financial reserves help improve a hospital or health system鈥檚 credit rating, which assists with borrowing money for needed facility and technology investments at more affordable interest rates.</li> <li>Strong financial reserves can also increase the amount of money a hospital or health system can borrow, an important safety valve if the organization needs additional funds to buffer the impact of poor financial performance from disrupted operations or an economic downturn affecting returns on investments.</li> <li>When all else fails, not-for-profit hospitals and health systems can draw upon their financial reserves to cover their operating expenses until they are able to stabilize their operations, or until their reserves are depleted.</li> <li>The ultimate purpose of financial reserves is to ensure that resources are available when hospitals and health systems鈥攁nd the communities they serve鈥攏eed them the most.</li> </ul> </div> </div> <p><strong><em><a href="/system/files/media/file/2023/04/Essential-Role-of-Financial-Reserves-in-Not-for-Profit-Healthcare.pdf" target="_blank" title="Click here to download The Essential Role of Financial Reserves in Not-for-Profit Healthcare PDF."><span>Download the full report.</span></a></em></strong></p> <hr> <ol> <li id="fn1">A very small percentage of not-for-profit hospitals and health systems can also generate meaningful funds through philanthropy, but most organizations do not have the capabilities for significant fundraising efforts.</li> </ol> </div> <div class="col-md-4"> <div class="panel module-typeC"> <div class="panel-heading"> <h3 class="panel-title">Media Coverage</h3> </div> <div class="panel-body"> <p><a href="https://www.fiercehealthcare.com/providers/industry-voices-financial-reserves-are-critical-fulfill-not-profit-hospitals-missions" target="_blank" title="Fierce Healthcare: Industry Voices鈥擣inancial reserves are critical to fulfill not-for-profit hospitals' missions of caring for all in their communities"><strong>Fierce Healthcare:</strong> Industry Voices鈥擣inancial reserves are critical to fulfill not-for-profit hospitals' missions of caring for all in their communities</a></p> </div> </div> <p><a href="/system/files/media/file/2023/04/Essential-Role-of-Financial-Reserves-in-Not-for-Profit-Healthcare.pdf" target="_blank" title="Click here to download The Essential Role of Financial Reserves in Not-for-Profit Healthcare PDF."><img alt="The Essential Role of Financial Reserves in Not-for-Profit Healthcare page 1. April 2023. A Kaufman Hall report prepared at the request of the 黑料正能量 Association. Kaufman Hall." data-entity-type="file" data-entity-uuid="3f08f5d1-d41a-465f-8819-9ee57e9b0815" src="/sites/default/files/inline-images/Page-1-The-Essential-Role-of-Financial-Reserves-in-Not-for-Profit-Healthcare.png" width="695" height="900"></a></p> </div> </div> </div> Wed, 19 Apr 2023 06:00:00 -0500 Financial/Philanthropic /node/681877 <p>The Complex Care Startup Toolkit is a practical collection of guides, templates and other tools for new and developing complex care programs, regardless of setting, population or geography. With examples from programs and organizations across the U.S., the toolkit covers program design, program operations, data and process improvement, team and leadership development, community mapping and collaboration, and communication.</p> Tue, 25 Jan 2022 21:16:13 -0600 Financial/Philanthropic /node/681876 <h2>Fundamentals for Nonprofits</h2> <p>Designed for community-based organizations and health care organizations already engaged in partnership, the Partnership Assessment Tool for Health, or PATH, provides a format to understand progress toward benchmarks characteristic of effective partnerships, identify areas for further development and guide strategic conversation. The tool is designed to help partnering organizations work together more effectively and maximize their impact.</p> Tue, 25 Jan 2022 21:12:18 -0600 Financial/Philanthropic /node/681874 <p>This resource provides a step-by-step process for organizing and preparing, planning and prioritizing, implementing, monitoring and evaluating, and sustaining a primary care and public health partnership project.</p> Tue, 25 Jan 2022 21:07:16 -0600 Financial/Philanthropic /node/681873 <h2>An Actionable Framework for Health Care and Public Health Collaboration</h2> <p>This report provides a framework to facilitate collaborative working relationships between the public health and health care sectors. The framework includes tactics and actionable strategies to support several elements of collaboration: governance structure, financing plan, cross-sector prevention models, data-sharing strategy, and performance measurement and evaluation.</p> Tue, 25 Jan 2022 20:57:30 -0600 Financial/Philanthropic /node/681872 <h2>Lessons Learned from Partnerships Between Networks of Community-Based Organizations and Healthcare Organizations</h2> <p>This report highlights themes and lessons learned that can inform new approaches to advancing community health. Through ARCH, Nonprofit Finance Fund partnered with three networks to explore what it takes for CBO networks to come together around a shared vision for partnering with health care.</p> Tue, 25 Jan 2022 20:52:50 -0600 Financial/Philanthropic /node/681871 <h2>Fundamentals for Nonprofits</h2> <p>This is a set of practical resources to help emerging and existing partnerships address common barriers and strengthen their collaborative activities. These include: Integrating to Improve Health: Partnership Models between Community-Based and Health Care Organizations; Value Proposition Tool: Articulating Value Within Community-Based and Health Care Organization Partnerships; and Health Care and Community-Based Organization Partnership: What Does It Cost? This resource outlines common partnership elements and establishes a framework to describe integration between community-based and health care organizations.</p> Tue, 25 Jan 2022 20:45:16 -0600 Financial/Philanthropic /node/681870 <p>A step-by-step guide for health care delivery and local health departments to partner their efforts to understand and collaboratively address community health needs.</p> Tue, 25 Jan 2022 20:41:49 -0600 Financial/Philanthropic /node/681869 <p>This infographic provides a quick overview of how place-based investing can create sustainable returns and strong communities. The graphic showcases a holistic capital approach in action.</p> Tue, 25 Jan 2022 20:38:29 -0600 Financial/Philanthropic