Question: We are part of a multi-hospital collaborative that provides funding to a medical respite program, a 15-bed unit in a homeless shelter that accepts patients experiencing homelessness who are transitioning out of an acute care setting. We contribute $25,000 annually. Can I count the $25,000 annual contribution, if we have utilized the program and discharged patients to this program?
Recommendation: The contribution to the homeless shelter may be considered a community benefit expense as long as your primary purpose in supporting the shelter is to provide access to medical respite care for persons experiencing homelessness and not a direct payment for services from the shelter to shorten their length of stay in order to save money for the hospital. If the contribution meets the guidance to be reported as community benefit, (it addresses an identified health need and the donation is restricted in writing for a qualifying community benefit purpose), we recommend you report it as E1: Cash Contributions.
Updated June 2024