A new report from the Lown Institute, an independent healthcare think tank, finds that Cayuga Health spent more on financial assistance and community investment than the estimated value of its tax exemption in 2021, giving the health system what the Institute calls a “fair share” surplus. Cayuga Health is estimated to provide more than $37M in assistance and investment in the communities it serves. The report also recognized Cayuga Health for its commitment to and investment in community health, for which it received a 5-star rating.

Nonprofit hospitals are exempt from paying most federal, state, and local taxes in exchange for providing free or discounted care and programs that address community health needs—things like substance abuse treatment, affordable housing, primary care clinics, and mental health services.

The vast majority of hospitals in Lown’s study did not meet their obligations as nonprofit entities. In total, US hospitals with fair share surpluses invested more than $4 billion in excess of their tax breaks in 2021. Cayuga Health is among only 20 percent of nonprofit hospitals nationwide to have such a surplus.

“It is our mission to improve the well-being of the communities we serve,” says Dr. Martin Stallone, CEO for Cayuga Health. “We are proud to be recognized by Lown for this measure of community assistance and investment again this year. It underscores our commitment to our patients and partner organizations across the region.”

“Hospitals increasingly recognize the importance of going beyond their walls to improve community health,” said Vikas Saini, MD, president of the Lown Institute. “These hospitals are leading the way in essential community health investments.”

Lown calculated Fair Share Spending by comparing the estimated value of hospitals’ tax exemptions to the amount spent on financial assistance and meaningful community investment—including community health improvement activities, cash and in-kind contributions to community groups, community building activities, and subsidized health services. Data was sourced from IRS Form 990 for fiscal year ending 2021. Only private, nonprofit hospitals with available IRS tax filings were included.

The Lown Hospitals Index for Social Responsibility is the only ranking to include metrics of health equity and value of care alongside patient outcomes, creating a holistic view of hospitals as total community partners. The Lown Institute is a nonpartisan think tank that generates bold ideas for a radically better system of health. Hospitals do not pay or apply to be graded by Lown. Learn more at www.LownHospitalsIndex.org.

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About Cayuga Health

Cayuga Health (CH) has two hospitals, Cayuga Medical Center, and Schuyler Hospital, as well as a multi-specialty group, Cayuga Medical Associates. Combined employment, including affiliated organizations, is over 2,800 employees. CH is clinically affiliated with Mayo Medical Laboratories, Rochester Regional Health for cardiac services, and the University of Rochester for neurosciences. Visit www.cayugahealth.org for more information.