Not-for-profit hospitals don’t pay taxes, but many of them act like Fortune 500 companies, taking on operations that mimic corporate giants. As these conglomerates continue to get larger through mergers and acquisitions and other expansions, the claims of operating as a charity is becoming further from reality, according to a report by Axios.
For example, more than two dozen private, not-for-profit hospital systems would rank among Fortune 500 companies for their revenues, according to Axios. And nearly 60% of community hospitals are private and non-profit and therefore don’t pay taxes.
Despite their enormous sizes and increasing desire for more funding through municipal bond markets, hospital transparency isn’t quite transparent yet, with health systems holding investors days that don’t allow public attendance. As profits grow for not-for-profit health systems, healthcare costs continue to rise.
“Hospitals are swimming in cash, which has attracted investors to them,” the report reads. “But hospitals' financial pursuits have raised concerns about whether they are continuing to chase revenue and inflate health care costs at the expense of patients.”
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Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."