Question

What are the benefits for a hospital to organize itself as a nonprofit? Do nonprofits make less money than for-profit hospitals? Do some quick research on the internet and see which major hospitals near you (or near a city you have lived in within the U.S.) are nonprofits. Can you find information on CEO compensation? Do they seem to make less than CEO's of for-profit hospitals? Does the hospital (or hospitals) you chose seem to be fulfilling its (or their) obligations to benefit the community? How do they do so?

Answer 1

Answer :- Nonprofit hospitals receive tax exemptions in return for providing community benefits, there is little consensus on what constitutes a community benefit or how to measure community benefits.  Community benefits and collective goods are linked—if a hospital chooses to provide a particular medical service despite its being unprofitable, that may indicate that the hospital views that service as a collective good that is worth providing because it benefits the community. In identifying and measuring the community benefits that hospitals provide, it seems reasonable, therefore, to focus on services that are uncompensated or relatively unprofitable.

Nonprofits make less money than for-profit hospitals because  uncompensated care as a share of operating expenses was higher at nonprofit hospitals than at for-profit hospitals . Nonprofit hospitals provide higher levels of uncompensated care than do for-profits .

New York-Presbyterian Hospital/Weill Cornell Medical Center (New York City) , The Mount Sinai Medical Center (New York City) , Bellevue Hospital Center (New York City) , Mount Sinai St. Luke's (New York City) , etc are some major hospitals near my city .

Compensation of CEOs at nonprofit hospitals was highly variable across the country. Compensation was associated with technology and patient satisfaction but not with processes of care, patient outcomes, or community benefit. Hospital chief executive officers (CEOs) play a critical role in shaping the performance of their organizations through setting organizational priorities, allocating resources, and hiring clinical leadership. Indeed, in a recent large national survey of hospital board chairpersons, respondents reported that CEOs were the single most influential individuals in shaping quality performance at their institutions.

All hospitals that i chose are fulfilling its obligation to benefits the community .They  provides a particular medical service despite its being unprofitable, that may indicate that the hospitals views that service as a collective good that is worth providing because it benefits the community. In identifying and measuring the community benefits that hospitals provide, it seems reasonable, therefore, to focus on services that are uncompensated or relatively unprofitable.