The reason why nonprofit hospitals became a point of interest for the recent studies is that the ones from the top of the list have earned throughout a single year $150 million up to $302.5 million only from patient care services. This fact raised questions because in an age where most hospitals tend to lose money instead of earning more, some of them , very few, earn an incredible amount every year. The questions is why and how it affects the other hospitals and also the customers.
After a recent study which was published in Health Affairs, experts have come up with the conclusion that donations, parking fees, sales from gift shops and other types of activities ,which obviously come with an additional financial benefit for the hospitals incomes, are not recorded in the fiscal registration. Hence, it supports the fact that all this huge amount of money comes only from patient care services.
Still, the purpose of these studies was not to frown upon the top nonprofit hospitals but to determine their characteristics. First are the facilities which are top notch on the local market and dominating the rest. Thus, private insurers have to agree with higher prices. Still , there are cosequences from which hospitals benefit and consumers not.
According to lead author Gerard Anderson, a Hopkins health policy professor, cosumers have to pay more if their health care provider is not available any longer. Moreover, these hospitals benefit from state and federal tax breaks as they have the role to provide charity work and benefit for the community.
Medicare data was thoroughly analyzed during these studies and it was revealed that among 3,000 acute care hospitals, 59 percent are nonprofit, 25 percent for profit and and 16 percent public. Still more than half of them instead of earning money from patient care service, they tend to lose it especially hospitals that are small or situated in a rural area. Therefore, these hospitals and the doctors were encouraged to go through even more procedures and tests which they can benefit from. And as long the quality of care keeps increasing , the Affordable Care act grants hospital reimbursements.
Regarding the most profitable nonprofit hospitals, experts believe that even if these hospitals can increase their fees, thanks to their facilities, they shouldn’t as it is paradoxical for a nonprofit hospital to earn such a substantial profit.
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