Question: Are any hospitals non-profit?
From: Emery L. of Brooklyn Park, MN
Answer: Actually, 70% of hospitals in the U.S. are nonprofit and 30% are for profit. The main difference between the two categories is ownership. Nonprofits are owned by government entities, educational organizations, or religious organizations or they may be community based. Nonprofits are established for charitable, humanitarian, or educational purposes. They are not owned by individuals so individuals do not profit or lose based on the hospital’s financial performance. Nonprofit hospitals are exempt from taxes but, in return, must give back services and care back to the community and patients. Nonprofit hospitals can generate profits but this is used to benefit their communities. To qualify as non-profit, hospitals are required by their state to provide some free care for the indigent. The requirements vary by state and federal rules allow non-profit hospitals to also demonstrate benefit to the community in public service announcements, medical research, and health fairs.
For-profit hospitals are public or private and are owned by an individual, individuals, or a private corporation. A public, for profit is publicly traded and owned by the corporation’s stockholders.
Check the American Hospital Directory website at www.ahd.com to find the status of your hospital.
Ruthann Russo, PhD, JD, MPH, RHIT, is a healthcare expert with more than 20 years of experience working in and advising healthcare organizations.
