pic by AL Bar

An organizations actions speak louder than their words.  Nonprofit Hospitals have been creating a bad image of the nonprofit health care industry.  The result is a reaction that will effect every organization in the profession.  The creation of  standards for documenting free care and with leaving less discretion for organizations.

Legislation is under consideration which would require nonprofit hospitals to provide a minimum amount of free care on the poor.

The majority of hospitals in the United States are nonprofits.  When the IRS grants 501 (C) 3 status to a nonprofit it is with the expectation that the organization is going to provide benefits to the community it serves.

The fact that some have curbed free care, some have closed facilities in poor communities and open others in richer communities, some have sent debts to collecting agencies and some have done all three.  These actions have caused Congress to review whether health care reform should include mandates that hospital organizations spend 5% or more of patient revenues on free care to keep their tax exempt status.

This previous post and cartoon link really give one the visual touch.

This entry was posted on Wednesday, December 24th, 2008 at 12:01 am and is filed under Business Plan, Public Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.