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2019 HEART Annual Report

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Engaging Enhancing Elevating Georgia rural patient taxpayers hospitals care 2019 HEART Annual Report Now, more than ever, Georgians — Take HEART! INSIDE THE REPORT A Letter from Georgia Governor Brian P. Kemp . .3 A Letter from Georgia Lt. Governor Geoff Duncan ...............4 Georgia HEART Hospitals ..................................5 HEART Contribution Results.................................6 Important Tax Developments ...............................7 Hospital Testimonials....................................8-9 2019 HEART Tax Credit Survey Results .......................10 Business Community Involvement ...........................11 THE HEART TEAM AVERY KATE ROSALYN LISA ALLISON PARKER SAYLOR MERRICK KELLY SAXBY RICE Director of Director of Executive Director of Director of Marketing & Stakeholder Director Operations Accounting Communications Engagement & Finance DIANNE MEGHAN JIM SHERRI NELSON- MEYER KELLY O’CONNOR WILLIAMS Client Services Accounting General Accounting Manager Manager Counsel Associate 2 Dear Supporters of the Georgia HEART Rural Hospital Tax Credit Program, A LETTER FROM As Georgians address the health challenges arising from the COVID-19 GEORGIA virus, I cannot overstate the key role played by our rural hospitals and GOVERNOR courageous service providers fighting on the front lines for those impacted by this pandemic. BRIAN P. KEMP Since 2017, many of you have donated to one or more of the Georgia HEART rural hospitals. As a result of your generosity, these hospitals were better able to provide critical care that, absent your thoughtful contributions, would not have been available to many of those infected by the coronavirus. Truly, these were life-saving contributions. As Georgia lawmakers consider the long-term effects of the COVID-19 pandemic and the steps that must be taken to promote related healthcare solutions in rural Georgia, it is reassuring to know that so many concerned citizens have embraced the Georgia HEART program. I deeply appreciate your continued financial support of our rural hospitals and the message of solidarity and hope that it sends to your fellow Georgians. Sincerely, Governor Brian P. Kemp 3 A LETTER FROM Dear Georgia HEART Supporters, GEORGIA Thank you for your support of the Georgia HEART program, which, in LIEUTENANT light of the COVID-19 pandemic, is more critical than ever. I hope you will join me in offering prayers and best wishes to the impacted patients GOVERNOR and their families in rural Georgia and to their compassionate and brave GEOFF DUNCAN health care providers. My desire to improve access to quality rural health care led to my introduction of rural hospital tax credit legislation in 2016. Georgia’s elected officials enacted what was (and remains) the nation’s only program of its kind. Two principles, evidenced during the recent pandemic, explain the success of the program: that states excel at finding unique solutions to pressing national issues; and, that individual compassion and philanthropy are indispensable to effectively addressing emergency situations and systemic social problems. I believe that it is possible, both as a state and as a free people, for us to exit this crisis stronger than ever. Your continued support of our rural communities through the Georgia HEART program is one of the important ways you can help us realize that possibility. Sincerely, Lieutenant Governor Geoff Duncan 4 GEORGIA HEART HOSPITALS Together, these 56 qualified rural hospitals and HEART are Helping Enhance Access to Rural Treatment. Appling Healthcare System, Baxley Memorial Hospital and Manor, Bainbridge Bacon County Hospital, Alma Miller County Hospital, Colquitt Bleckley Memorial Hospital, Cochran Mitchell County Hospital, Camilla Brooks County Hospital, Quitman Monroe County Hospital, Forsyth Burke Medical Center, Waynesboro Morgan Medical Center, Madison Candler County Hospital, Metter Murray Medical Center, Chatsworth To learn more about each hospital, visit Chatuge Regional Hospital, Hiawassee Navicent Health Baldwin, Milledgeville www.georgiaheart.org Clinch Memorial Hospital, Homerville Phoebe Sumter Medical Center, Americus Coffee Regional Medical Center, Douglas Phoebe Worth Medical Center, Sylvester Colquitt Regional Medical Center, Moultrie Piedmont Mountainside Hospital, Jasper Crisp Regional Hospital, Cordele Polk Medical Center, Cedartown Dodge County Hospital, Eastman Putnam General Hospital, Eatonton Donalsonville Hospital, Donalsonville South Georgia Medical Center-Berrien Campus, Nashville Dorminy Medical Center, Fitzgerald South Georgia Medical Center-Lanier Campus, Lakeland Effingham Hospital, Springfield Southeast Georgia Health System-Camden Campus, St. Marys Elbert Memorial Hospital, Elberton Southwest Georgia Regional Medical Center, Cuthbert Emanuel Medical Center, Swainsboro St. Mary's Good Samaritan Hospital, Greensboro Evans Memorial Hospital, Claxton St. Mary's Sacred Heart Hospital, Lavonia Habersham Medical Center, Demorest Stephens County Hospital, Toccoa Higgins General Hospital, Bremen Taylor Regional Hospital, Hawkinsville Irwin County Hospital, Ocilla Tift Regional Medical Center, Tifton Jasper Memorial Hospital, Monticello Union General Hospital, Blairsville Jeff Davis Hospital, Hazlehurst University Hospital McDuffie, Thomson Jefferson Hospital, Louisville Upson Regional Medical Center, Thomaston John D. Archbold Memorial Hospital, Thomasville Washington County Regional Medical Center, Sandersville Liberty Regional Medical Center, Hinesville Wayne Memorial Hospital, Jesup Meadows Regional Medical Center, Vidalia Wellstar Sylvan Grove Hospital, Jackson Medical Center of Peach County, Byron Wills Memorial Hospital, Washington 5 2020-TO-DATE $12,085,565 2020-TO-DATE 2020-TO-DATE$12,085,565 $12,085,565 2020-TO-DATE 2019$12,085,565 $55,825,157 2019 2019 $55,825,157 $55,825,157 2019 2018 $55,825,157 $60,000,000 $55,825,157 2018 2018 $60,000,000 $60,000,000 $55,825,157 $55,825,157 2018 2017 $8,516,122 $60,000,000 $55,825,157 $46,501,051 2017 $8,516,1222017 $8,516,122 $46,501,051 $46,501,051 2020-TO-DATE $12,085,565 HEART CONTRIBUTION2017 $8,516,122RESULTS $46,501,051 2019 $55,825,157 2019 HEART Contribution Results Dollar Amount of 2019 HEART Contributions 2018 $60,000,000 $55,825,157 by$5,903,973 Taxpayer Type $5,903,973 $5,903,973 2017 $8,516,122 $46,501,051 $5,903,973 Number of Contributions Individuals: 3,791 $10,536,974 Corporations: 112 Individual pass-through owners: 625 $10,536,974 $10,536,974 Tax Credits Approved Tax Credit Contributions Taxpayer applications Approved amounts $10,536,974 Tax Credits ApprovedTax Credits TaxApproved Credit ContributionsTax Credit Contributions that were approved by that were actually $30,060,104 $5,903,973 Georgia DOR paid by taxpayers $30,060,104 $30,060,104 Tax Credits Approved Tax Credit Contributions $30,060,104 Individuals Individual pass-through owners $10,536,974 Individuals CorporationsIndividualIndividuals pass-throughIndividual owners pass-through owners CorporationsIndividuals CorporationsIndividual pass-through owners Tax Credits Approved Tax Credit Contributions Corporations $30,060,104 “Numbers and charts are important – HEART Tax Credits Approved by DOR by Year but their real meaning is to show the extent of the impact that thousands 2020-TO-DATE $12,085,565 As of 5/5/20 of Georgia citizens are having on rural Individuals Individual pass-through owners Corporations hospitals through this program. Your 2019 $55,825,157 tax credit contributions have been 2018 $60,000,000 encouraging$55,825,157 and essential – and in 2020, they will be vital.” 2017 $8,516,122 $46,501,051 – Lisa Kelly, Georgia HEART Executive Director 6 $5,903,973 $10,536,974 Tax Credits Approved Tax Credit Contributions $30,060,104 Individuals Individual pass-through owners Corporations The HEART of the Matter IMPORTANT TAX Federal for Pass-Through Businesses Georgia Deduction Credit DEVELOPMENTS Recent Federal Tax Regulations Allow for Business Deductibility of HEART Payments There is no federal income tax cost for any taxpayer • IRS proposed regulations provide that a payment made by a pass-through business who contributes to a to a charity (such as a rural hospital organization, or RHO) may qualify for an qualified rural hospital ordinary and necessary business expense deduction, even where the owners receive organization in exchange a state income tax credit for the payment. for a Georgia income tax • Businesses can deduct payments relevant to their trade or business that are made credit – and, their 100% with the reasonable expectation of financial return commensurate with (but, state income tax credit according to the IRS, not necessarily equal to) the amount of the payment. remains intact! • The business expense deduction reduces the taxable net income of the pass-through business owner at the federal level, resulting in federal tax savings. • For examples of federal tax benefit, which is $3,500 for a $10,000 contribution under certain circumstances, see: tinyurl.com/RHOCredit. Limits removed on July 1st We recommend that you consult with your tax professional about Taxpayer Type Tax Credit = 100% of the amount contributed up to the following limits: this tax planning opportunity, as January 1 through June 30 Beginning July 1 HEART does not provide tax advice. Individual Filer $5,000 Unlimited If you pay Georgia income Married Filing Jointly $10,000 Unlimited $10,000, if owner would have paid GA taxes, you are eligible to Pass-Through income tax in that amount on their share Unlimited Entity receive a 2020
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