Guest Forum | Favorite Links | Dee Bonner Files
Dee Bonner | Shelbyville, IN
Advanced Search

home : news & opinion : news & opinion
May 18, 2021

2/25/2013 12:24:00 AM
Hospitals: Why Are Nonprofits So Profitable?
Under Internal Revenue Service rules, nonprofit hospitals are not prohibited from taking in more money than they spend. However they aren't allowed to distribute profits to shareholders (because they don't have shareholders?).

So, what do nonprofit hospitals do with all their profits? They invest in new facilities, buy more equipment, consolidate physicians, offer additional services and pay "healthy" executive salaries. They expand the search for more patients, raise prices, and push harder to collect bill payments. In health care there is no price transparency and very little competition in any given locale. As a result, a hospital is often the largest local employer in a smaller community, so there's rarely any discussion about the impact of its rapid growth.

I don't know what the implications of these activities are for nonprofit hospitals that choose not to operate under Internal Revenue Service rules. But a lengthy report by Steven Brill recently published in Time magazine reveals a glimpse inside the secret world of the U.S. healthcare system with some surprising revelations about nonprofit hospitals, Medicare and Obamacare.

You can view a PDF version of the report at the following link:

Bitter Pill: Why Medical Bills Are Killing Us

Article Comment Submission Form
Please feel free to submit your comments.

Article comments are not posted immediately to the Web site. Each submission must be approved by the Web site editor, who may edit content for appropriateness. There may be a delay of 24-48 hours for any submission while the web site editor reviews and approves it.

Note: All information on this form is required. Your telephone number is for our use only, and will not be attached to your comment.
Submit an Article Comment
First Name:
Last Name:
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.

Guest Forum | Favorite Links | Dee Bonner Files
Copyright 2021, P.O. Box 464, Shelbyville, Indiana 46176

Software © 1998-2021 1up! Software, All Rights Reserved