41–50 of 149 posts
So CEO compensation there is excessive for sure. That said, charity care is probably better measured vs a hospital’s net income absent any such care. My understanding is these hospitals are squeezed on both sides of the healthcare system by insurance and health equipment and drug providers, so they don’t have a lot of net income to spare for charity care.
Hospitals are all non-profit so they can reap tax benefits. In order to avoid profit but still maintain growth, they shovel all their profits into network expansion. New hospitals, clinics, outpatient centers, wellness centers, all that in order to avoid lowering costs for patients. This is why it seems each locale is packed with care all from one central hospital. They have to keep growing to maintain "non-profit" s…
> Hospitals are all non-profit so they can reap tax benefits. In order to avoid profit but still maintain growth, they shovel all their profits into network expansion. That doesn't make any sense; it seems to be based on the premise that “non-profit” means the firm can't make surplus income, but it just means they are structured so as not to return profits to investors or some other party.
Hospitals are all non-profit so they can reap tax benefits. In order to avoid profit but still maintain growth, they shovel all their profits into network expansion. New hospitals, clinics, outpatient centers, wellness centers, all that in order to avoid lowering costs for patients. This is why it seems each locale is packed with care all from one central hospital. They have to keep growing to maintain "non-profit" s…
Non-profits don't have to avoid profit. The difference is what they do with any profits; they can't distribute it as dividends to owners/shareholders.
Think of nonprofit not as another term for benevolent or charitable organization (which is what people instinctively think), but as an alternative tax accounting scheme. Excess revenue gets funneled to the insiders at the top so that at tax year end there is no profit . Presumably these insiders are paying income tax. I once knew a guy who worked in the field of providing services to non-profits, and he described to…
Earlier quoted context omitted.
> Non-profits, in theory, serve a societal/community purpose True of charities and certain other classes of non-profits, not true of other non-profits unless “societal/community purpose” is reduced to a meaningless phrase covering every possible purpose besides returning profits, including enabling a group of sppnsoring firms to earn bigger profits.
The list of "Exempt Organization Types" on https://www.irs.gov/charities-and-nonprofits is pretty heavily societal/community style purposes. (Political organizations is the most debatable on there.) That there are all sorts of loopholes and tax fiddles possible doesn't change the underlying theoretical motivation.
Because otherwise I think that 501(c)6 Business Leagues would be a lot higher than Political Organizations on a list of things whose purpose is a lot less social/community than enabling private profit.
Earlier quoted context omitted.
> Hospitals are all non-profit so they can reap tax benefits. In order to avoid profit but still maintain growth, they shovel all their profits into network expansion. That doesn't make any sense; it seems to be based on the premise that “non-profit” means the firm can't make surplus income, but it just means they are structured so as not to return profits to investors or some other party.
How does that not make sense. That’s what it is. Non profit has no charity requirements
Earlier quoted context omitted.
The list of "Exempt Organization Types" on https://www.irs.gov/charities-and-nonprofits is pretty heavily societal/community style purposes. (Political organizations is the most debatable on there.) That there are all sorts of loopholes and tax fiddles possible doesn't change the underlying theoretical motivation.
Sounds like someone hasn't really clicked through the multiple levels to find out what is wrapped up under “other nonprofits” (which is most of the categories of non-profits), and so is only considering political orgs and the three different subsets of 501(c)3 charities listed at the top level on that page. Because otherwise I think that 501(c)6 Business Leagues would be a lot higher than Political Organizations on a…
Earlier quoted context omitted.
Non-profits don't have to avoid profit. The difference is what they do with any profits; they can't distribute it as dividends to owners/shareholders.
Certain types non-profits cannot "show profit" even if it's just to build their rainy-day fund, or they're limited in how big that can be.
operating foundations have a stricter regulation that could fit that, based on where their money comes from that year
I don't understand at all why people donate money or volunteer at hospitals like it's a charity or charity work. It really doesn't seem like a charity to me.
And I daresay if you're a big enough donor you're going to get pretty darn good treatment.