Non-Profit Hospitals Made Huge Profits During Pandemic While Receiving $23 Billion In Federal COVID-19 Aid
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Federal officials gave more than $23 billion COVID-19 aid to the nation’s top 20 nonprofit hospitals even as a 62 percent increase in their collective net assets led parallel surges in the institutions’ total profits and revenues during the 2018-2021 time period spanning the Coronavirus pandemic, according to a new report.
Only two of the 20 institutions have repaid the government for the COVID-19 aid they received.
“The 20 largest nonprofit hospitals in the country continued making massive profits while their cumulative net assets soared to $324.3 billion in 2021, up from $200.6 billion in 2018. The year 2021 is the latest year available for cross-comparison purposes.
“Those hospital systems received congressional COVID bailouts of $23 billion and only two providers partially paid their COVID bailout back,” said the report compiled by Open The Books, an Illinois-based research nonprofit that compiles and posts spending by all levels of government in America. The two institutions that have partially repaid the government were not identified.
The biggest jump among the top 20 was 92 percent by the Mayo Clinic, based in Rochester, Minnesota, whose assets went from $9.2 billion in 2018 to $17.7 billion in 2021. The Mayo Clinic received $350,000 in federal COVID-19 aid, the lowest amount received among the top 20 institutions.
The Cleveland Clinic Health System, based in Independence, Ohio, saw its assets go up 60 percent, from $9.8 billion to $15.7 billion, while receiving $118 million in federal COVID-19 aid. Intermountain Healthcare, based in Salt Lake City, Utah, the 12th largest of the top 20, enjoyed a 63 percent growth in net assets from $7.1 billion to $11.6 billion. Intermountain received $518 million in aid.
Seeing a 43 percent jump in net assets between 2018 and 2021 was the Northwestern Medicine system, moving from $8.3 billion to $11.9 billion, and receiving $419 million in COVID-19 aid from federal officials. The Indiana University Health System went from $7 billion in 2018 to $10.3 billion in 2021, a 47 percent increase. The Indiana facility received $726 million in COVID-19 assistance from the government.
And as the revenues poured in for the 20 hospitals, compensation for their top executives soared, often beyond $10 million annually, according to the report.