Tax-exempt Hospitals: not-for-profit (NFP) hospitals that, based on their charitable purpose, are exempted by the IRS from certain taxes. 62% of U.S. hospitals are private not-for profit entities, the majority affiliated with religious denominations. Another 20% of NFPs are government-funded. NFP hospitals provide the majority of charity care and Medicaid, as well as low-margin services not found at for-profit hospitals: trauma centers, burn units, colleges for health training, physician training programs, and the like. Tax exemptions include federal income tax and most sales and property taxes.