Hospitals No Longer Non-Profit?
Hospitals in the United States are a mix of for-profit and non-profit entities. The latter group gets a big benefit in the form of being exempt from taxation. To qualify, well, your organization has to be deemed a charitable organization, but that definition has never really been established or enforced.
Hospitals in the United States are a mix of for-profit and non-profit entities. The latter group gets a big benefit in the form of being exempt from taxation. To qualify, well, your organization has to be deemed a charitable organization, but that definition has never really been established or enforced. Consequently, hospitals are more or less on the honor system to provide a sufficient level of uncompensated care and other services that are collectively termed “community benefit.” The provision of this community benefit translates into non-profit status, which again, means exemption from taxation.
However, at least one state is cracking down on hospitals that appear to be gaming the system by enjoying the tax-exempt status of a non-profit without providing a meaningful level of community benefit. According to Bruce Jaspen, the state of Illinois has had enough. Their budget is tight, and they could use the revenue, so they rescinded the non-profit status of one hospital last year, are working to do the same with three more hospitals this year, and may eventually target more than a dozen additional hospitals across the state. It makes tremendous sense. After all, if you’re acting like a for-profit hospital, you should be treated like a for-profit hospital.
Budget issues are not unique to Illinois, and I highly doubt that non-profits behaving like for-profits are unique to Illinois either. Figuring out how to define, measure, evaluate and monitor community benefit levels in hospitals could become big business as states consider ways to generate more revenue.
You may be interested
Where Is The Balance? Pushing Back Against Consumer Health TechLarry Alton - August 18, 2017
When Republican Congressman Jason Chaffetz glibly remarked that Americans struggling to afford insurance should choose between that and their smartphones,…
What to Look for in Patient Solutions SoftwareRobert Cordray - August 17, 2017
The medical sector is one area where technology has had a significant impact, largely by providing tools that simplify many…
Can Natural Remedies Like RediCalm Decrease Stress and Anxiety?Ryan Kh - August 16, 2017
According to research from the National Institute of Mental Health, anxiety disorders are the most common mental illness in the…