Skepticism over nonprofit hospitals that claim poverty

We should greet with a healthy dose of skepticism reports about the financial woes of the country’s “nonprofit” hospital systems. One system has launched and funded 80 for-profit startups. Another has partnered with a $4,000-a-night wellness spa and is co-investing with leading private equity firms.

“Not-for-profit” hospitals are required to provide charity care and make other investments in their communities to improve the quality of life and health of their citizens. However, “the IRS does not specify any qualitative requirements…and it faces considerable operational challenges in overseeing these activities. A recent study found no difference in spending on charity care between not-for-profit and for-profit hospital systems.”

“Seven of the ten highest-paid nonprofit CEOs in U.S. hospital systems, and their salaries and benefits, total tens of millions of dollars a year.”

We pay twice as much per person for health care as many other developed countries, and yet, despite the skill and dedication of millions of health professionals, we fail to achieve good health outcomes. Our life expectancy has actually declined in recent years. We pay more not because of overuse of care, but simply because prices are higher here. Perhaps it is time for a “Medicare For All” system, with much lower administrative costs and much higher satisfaction levels?

If we focused exclusively on prevention, we might be able to eliminate the need for so many massive and expensive hospital systems, which often exist in name only as non-profit organizations.

Mary Ann Larson
Bangor

Copy story link