Nonprofit hospitals and health systems may have a public relations problem. The organizations’ tax-exempt status is a benefit but comes with responsibility: providing tangible value to their communities. Yet often hospital and health systems struggle to communicate the true impact of community contributions.
As healthcare costs become a central issue in upcoming elections, the industry is facing increased scrutiny. A May 4 op-ed in the Washington Post illustrates the tension. In it, the author accused nonprofit hospitals of not fully meeting community benefit requirements and advocated taxing them. American Hospital Association President and CEO Rick Pollack’s forceful response includes myriad rebuttals but underscores a larger issue: hospitals are not effectively telling their story – locally or nationally.
The need for such public response shows healthcare organizations are missing opportunities to proactively showcase the value they bring to communities. Stakeholders like patients, elected officials, partner organizations, referring providers, donors and regulatory authorities don’t automatically understand what nonprofit hospitals contribute. Without clear communication, questions about tax-exempt status will persist.
To build trust and defend their nonprofit status, organizations must strategically integrate data with authentic human experience to craft a cohesive narrative that defines impact, demonstrates long-term commitment to community health and underscores their essential role in sustaining the future success of their regions.
What does that look like?
Table Stakes. Hospitals and health systems are called to leverage the data already being produced to show impact like publicizing community health needs assessments (CHNA) and benefit reports, engaging openly with internal and external audiences on long-range strategic plans, and proactively addressing regulatory reporting requirements, such as timely 990 filings.
Shine a Light. Sharing stories about community partnerships, demonstrating leadership in local health initiatives and showcasing how the health system gives back to the community in meaningful ways are essential steps in making the case for the unique benefits nonprofits provide. And that case must be made consistently, especially in an era where inflation, job loss and the cost of living are top of mind for just about everyone.
An Ounce of Preparation. When questions arise about why your organization doesn’t pay taxes, it is critical to have clear answers prepared in advance. This is not a new topic and one that’s only growing in interest. That’s why a partner who understands how to effectively communicate your community impact is so important. An experienced partner can help craft the narrative and guide outreach efforts so the public, elected officials and media have a full picture of how your hospital’s tax exemption translates into real, measurable benefits for the community.
Use Your Tools. Activate your organization’s marketing and communications tools and strategies to elevate your narrative.
- Develop clear, consistent message frameworks that articulate your organization’s narrative, goals, values and future state.
- Customize outreach for different audiences (employees, patients, elected and community leaders, donors) to meet them where they are.
- Use local media, town halls and digital platforms to inform the public.
- Leverage multiple channels. Use photos, videos and social media, and include community benefit highlights in newsletters, blogs, donor communications, annual reports and recruitment materials that reinforce your healthcare organization’s mission-driven impact.
- Repurpose and extend your visibility beyond an initial outreach. Provide updates, spotlight beneficiary stories and partner with local organizations to amplify reach across their channels and networks.
In today’s climate, simply doing good is not good enough; you must show the good you do. By collaborating with experts who know how to highlight your contributions and navigate public opinion, nonprofit hospitals can secure the community support so critical when your tax exemption is at risk.
Like politics, all healthcare is local, and when national organizations call for taxing nonprofit hospitals, you want your local officials and consumers to offer full-throated support – not my hospital. The stakes are high, and the conversation is ongoing. Hospitals must tell their story with clarity and conviction because the public’s perception, and ultimately, its support, depends on it.
Contact Lovell Communications for help telling your organization’s story.