{"id":663,"date":"2017-09-15T12:18:28","date_gmt":"2017-09-15T16:18:28","guid":{"rendered":"http:\/\/sgamag.com\/?p=663"},"modified":"2018-05-19T19:43:16","modified_gmt":"2018-05-19T23:43:16","slug":"boost-in-tax-credit-helps-rural-hospitals","status":"publish","type":"post","link":"https:\/\/sgamag.com\/index.php\/2017\/09\/15\/boost-in-tax-credit-helps-rural-hospitals\/","title":{"rendered":"Boost in Tax Credit Helps Rural Hospitals"},"content":{"rendered":"
\"Sen.

Sen. Dean Burke<\/p><\/div>\n

Rural communities across Georgia face many uncertainties and at the top of the list is access to medical care. For those communities that are fortunate to have a hospital, the threat of closure is becoming a greater possibility.<\/p>\n

In the past five years, five Georgia hospitals have closed, while others are struggling to stay open. The financial strain comes primarily from care that was delivered but received no monetary payment.<\/p>\n

Hospitals are often the primary source of medical attention for the majority of uninsured residents, leaving hospitals, especially in rural areas, bearing an enormous financial burden.<\/p>\n

In a 2015 study by the Kaiser Commission on Medicaid and the Uninsured, 14 percent of Georgia\u2019s population is identified as uninsured, which represents the second highest uninsured rate in the country, behind Texas with 16 percent.<\/p>\n

\u201cRural hospitals are for the most part losing money from the changes that have occurred in healthcare over the past 10 to 15 years,\u201d said Sen. Dean Burke (R-Bainbridge). \u201cRevenue from commercial insurance plans are also going down.\u201d<\/p>\n

Burke said that it is also becoming harder for people to afford insurance.<\/p>\n

\u201cThe cost to purchase insurance is going up, and deductibles are getting higher,\u201d said Burke, who serves as vice chairman of the Senate\u2019s Health and Human Services Committee. \u201cPeople who do have insurance are seeing their deductibles go up. It has gone from $250 to $2,500, which is now considered a small deductible. There are a lot of people who just can\u2019t afford the deductibles.\u201d<\/p>\n

Keeping hospitals financially stable is a challenge and a topic of concern throughout the state, especially among Georgia\u2019s legislators.<\/p>\n

In 2016, the Georgia General Assembly established the Rural Hospital Tax Credit (SB 258), which provides individuals and businesses the opportunity to receive tax credits of 70 percent for contributions to eligible rural hospitals.<\/p>\n

The tax credit was regarded as a step in the right direction. However, offering a 70 percent tax credit didn\u2019t generate enough support.<\/p>\n

This year SB 180 was passed, which increased the tax credits available to taxpayers from 70 percent to 90 percent. The legislation also raised the population requirement of a rural community from 35,000 to 50,000.<\/p>\n

During the next three years, $60 million in tax credits will be made available each year to assist rural hospitals. Hospitals eligible to receive the tax credits are selected and prioritized based on financial need determined by the Georgia Department of Community Health (DCH). Each hospital can receive up to $4 million in donations per year from the tax credit.<\/p>\n

\u201cWe saw after the first year that we needed to up the tax credit to 90 percent to make it more competitive,\u201d Burke said. \u201cWe know that it will take time, but our concern was that these rural hospitals need money now to move forward.\u201d<\/p>\n

\"Rep.

Rep. Jason Shaw<\/p><\/div>\n

Rep. Jason Shaw (R-Lakeland) said the increase will attract more companies to participate in the Rural Hospital Tax Credit program.<\/p>\n

\u201cI am happy with the changes we made and confident the expanded credits will lure more investments in our rural hospitals that continue to struggle financially,\u201d Shaw said. \u201cMost of the problems in healthcare boils down to funding issues, and this new money will allow participating rural hospitals to address needs they have that they otherwise could not even think about dealing with.\u201d<\/p>\n

Shaw believes that SB 180 is a good start, but more work needs to be done.<\/p>\n

\u201cWe still have a lot of issues to address in dealing with all the changes out there in healthcare,\u201d Shaw said, \u201cbut this is certainly a step forward that won\u2019t do anything but help these hospitals that are so vital to the communities they serve.\u201d<\/p>\n

In an effort for individual and corporate taxpayers to take full advantage of the hospital tax credit, Atlanta-based Portage Charity Advisors created the Georgia HEART (Helping Enhance Access to Rural Treatment) program.<\/p>\n

Through Georgia HEART, qualified rural hospitals receive assistance in managing the responsibilities of the program through marketing, tracking, processing, and reporting requirements.<\/p>\n

The Georgia Hospital Association (GHA), through its subsidiary Georgia Hospital Health Services, is collaborating with Georgia HEART to make sure qualified rural hospitals benefit from the tax credits.<\/p>\n

Hospital participation in the Georgia HEART program is optional. The DCH has identified 49 rural hospitals that are qualified to participate in the tax credit program for 2017, and 41 of these hospitals are partnering with Georgia HEART.<\/p>\n

\"Bill

Bill Wylie, Georiga Hospital Association<\/p><\/div>\n

\u201cEach hospital is unique in how they will promote the tax credits, and Georgia HEART is there to assist,\u201d said Bill Wylie, senior vice president for business operations at GHA. \u201cGeorgia HEART works with the taxpayers and hospitals to make sure both receive their benefits from the tax credit program.\u201d<\/p>\n

One of the biggest challenges in soliciting tax credits from individuals and businesses involves learning the process.<\/p>\n

\u201cThere is a \u2018learning curve\u2019 involved with these type of tax credit programs,\u201d said Kate Saylor, director of marketing and communications with Georgia HEART. \u201cMany taxpayers believe it is \u2018too good to be true\u2019 that they can support a deserving rural hospital and receive tax credit\u2014not a mere tax deduction\u2014for up to 90 percent of their contribution amount, up to certain maximum limits.\u201d<\/p>\n

Saylor explained that there are also federal deductions available through Georgia\u2019s rural hospital tax credit program.<\/p>\n

\u201cIf they itemize their federal income tax deductions, they can also receive a federal deduction for 100 percent of their contribution,\u201d she said.<\/p>\n

Georgia HEART provides rural hospitals with administrative support to promote the financial benefits for the taxpayer and hospital.<\/p>\n

\u201cUnfortunately, not many rural hospitals have a full-time development director or staff to actively market this wonderful opportunity,\u201d Saylor said. \u201cIn addition to relying on Georgia HEART\u2019s marketing materials and strategies, many rural hospitals are hoping their local CPA community will spread the word.\u201d<\/p>\n

Since going from 70 percent to 90 percent, Georgia HEART has seen an increase in the number of people contributing.<\/p>\n

\u201cThe increase to 90 percent increases the likelihood that CPAs in the metro Atlanta area and other non-rural cities in Georgia will recommend the tax credit opportunity to their<\/p>\n

\"Kate

Kate Saylor, Georgia HEART<\/p><\/div>\n

clients,\u201d said Saylor, \u201cmany of whom may want to support rural healthcare.\u201d<\/p>\n

Businesses are also encouraged to implement a Georgia HEART Employee Giving Campaign to make it easier for employees to contribute to rural hospitals in their community or across the state.<\/p>\n

The employee giving campaign is designed to help taxpayers who might not have the available funds to contribute for the maximum credit, which is $5,000 for individuals and $10,000 for married couples filing jointly. Businesses that participate in the giving campaign allow employees (who have been pre-qualified by the Georgia Department of Revenue) to make their contribution on an installment basis through their Georgia income tax withholdings for the year.<\/p>\n

For more information on Georgia HEART, visit georgiaheart.org<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Rural communities across Georgia face many uncertainties and at the top of the list is access to medical care. For those communities that are fortunate to have a hospital, the threat of closure is becoming a greater possibility. In the past five years, five Georgia hospitals have closed, while others are struggling to stay open. […]<\/p>\n","protected":false},"author":3,"featured_media":736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"yoast_head":"\nBoost in Tax Credit Helps Rural Hospitals - South Georgia Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sgamag.com\/index.php\/2017\/09\/15\/boost-in-tax-credit-helps-rural-hospitals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Boost in Tax Credit Helps Rural Hospitals - South Georgia Magazine\" \/>\n<meta property=\"og:description\" content=\"Rural communities across Georgia face many uncertainties and at the top of the list is access to medical care. 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For those communities that are fortunate to have a hospital, the threat of closure is becoming a greater possibility. In the past five years, five Georgia hospitals have closed, while others are struggling to stay open. 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