The Effects of Not-for-Profit Hospital Reported Profits and Charitable Care on Perceptions of Tax-Exempt Status

2001 ◽  
Vol 23 (2) ◽  
pp. 50-58 ◽  
Author(s):  
Kathryn J. Jervis Wilkicki
Keyword(s):  
Local Property ◽  
Two Dimensions ◽  
Accounting Firms ◽  
For Profit ◽  
Not For Profit ◽  
Tax Practitioners ◽  
State Income Tax ◽  
Tax Exempt ◽  
State Income ◽  
Main Effects

I investigate whether the hospital tax-exemption decision is a function of (1) reported profits and (2) the amount of charitable care provided. Tax practitioners from public accounting firms made decisions about whether the hospital should maintain federal and state income tax and local property tax exemptions. A between-subject design was used with cases at two dimensions: reported profits (high and low) and level of charitable care (high and low). Findings revealed that the main effects of reported profits and charitable care do not independently appear to affect respondents' perceptions about tax exemption. However, when charitable care is low, respondents' perceptions about tax exemption were negatively influenced by high reported profits.

The Methodist Hospital System: Tax Exemption and Charitable Responsibilities of Not-for-Profit Hospitals

2001 ◽  
Vol 16 (1) ◽  
pp. 67-97 ◽  
Author(s):  
Craig E. Bain ◽  
Alan I. Blankley ◽  
Dana A. Forgione
Keyword(s):  
Financial Reporting ◽  
Attorney General ◽  
Economic Value ◽  
Poor People ◽  
Charity Care ◽  
Hospital System ◽  
For Profit ◽  
Not For Profit ◽  
The Social ◽  
Tax Exempt

In November 1990, the Texas Attorney General filed a lawsuit against The Methodist Hospital System, alleging that it had failed in its duty to provide enough charity care to poor people. The state claimed that the hospital provided significantly less charity care than the hospital reported; it then filed the suit in an effort to require specific performance—that is, to compel the hospital to provide greater amounts of charity care in the future. The case focuses on the amount of charity care provided before the suit, the economic value of the tax exemption provided to the hospital because it is a not-for-profit (NFP) hospital, and the responsibilities of the hospital given the expectations of society. The case also brings into sharp relief the value of having tax-exempt status and the social and political expectations that accompany the exemption. In addition, the case raises ethical questions concerning these issues, as well as issues involving the financial reporting of the entity and management perquisites.

Corporate Reorganization: The Last Gasp or Last Clear Chance for The Tax-Exempt, Nonprofit Hospital?

1988 ◽  
Vol 13 (4) ◽  
pp. 527-559
Author(s):  
Melvin Horwitz
Keyword(s):  
Health Care ◽  
Health Care Organization ◽  
Care Organization ◽  
Nonprofit Hospitals ◽  
Corporate Reorganization ◽  
For Profit ◽  
Not For Profit ◽  
Tax Exempt ◽  
Pros And Cons ◽  
Nonprofit Hospital

AbstractThe current revolution in health care organization and financing, increased competition, and a retrenching of industry from its commitments to expansion of health care benefits challenge the nonprofit hospital's existence as a viable entity. Hospital governing boards and administrators have turned to corporate reorganization in order to maintain their financial position and to continue to serve their communities.This Article examines the not-for-profit concept and the problems facing nonprofit hospitals. It reviews the pros and cons of reorganization and the for-profit/nonprofit controversy. It questions whether the hybridization of the hospital results in a stronger or weaker species and discusses the possible effects of the newly structured entity on the quality and delivery of health care. Finally, the Article suggests that the nonprofit hospital may survive only by a continued commitment to societal and communal values, to service rather than to profit; that this commitment is adequate justificaton for the preservation of the nonprofit system, and its preservation will reinforce and strengthen the concept.

The Impact of IRS Tax Policy on Hospital Community Benefit Activities

2017 ◽  
Vol 76 (2) ◽  
pp. 167-183 ◽  
Author(s):  
Valerie A. Yeager ◽  
Alva O. Ferdinand ◽  
Nir Menachemi
Keyword(s):  
Community Health ◽  
Secondary Data ◽  
Community Benefit ◽  
American Hospital ◽  
American Hospital Association ◽  
For Profit ◽  
Not For Profit ◽  
Tax Exempt ◽  
Quasi Experimental ◽  
The Impact

The Internal Revenue Service (IRS) recently introduced tax code revisions requiring stricter oversight of community benefit activities (CBAs) conducted by tax-exempt, not-for-profit hospitals. We examine the impact of this tax requirement on CBAs among these hospitals relative to for-profit and government hospitals that were not subject to the new policy. We employed a quasi-experimental, difference-in-difference study design using a longitudinal observational approach and used secondary data collected by the American Hospital Association (years 2006-2010 including 20,538 hospital year observations). Findings show a significant increase in the reporting of 7 of the 13 CBAs among tax-exempt, not-for-profit hospitals compared with other hospitals after the policy change. Examples include partnering to conduct community health assessments ( b = 0.035, p = .002) and using capacity assessments to identify unmet community health needs ( b = 0.041, p = .001). Recent tax revisions are associated with increases in reported CBAs among tax-exempt, not-for-profit hospitals. As the debate continues regarding tax exemption status for not-for-profit hospitals, policy makers should expand efforts for enhanced accountability.

The Development of Not-For-Profit Hospital Cost Models

1988 ◽  
Vol 6 (1) ◽  
pp. 35-48
Author(s):  
Greg M. Thibadoux ◽  
Nicholas Apostolou ◽  
Ira S. Greenberg
Keyword(s):  
Hospital Cost ◽  
Cost Models ◽  
For Profit ◽  
Not For Profit

10. Designing an online curriculum supporting risk management and patient safety

2007 ◽  
Vol 30 (4) ◽  
pp. 33
Author(s):  
T. Gondocz ◽  
G. Wallace
Keyword(s):  
Risk Management ◽  
Medical Education ◽  
Patient Safety ◽  
Online Learning ◽  
Online Courses ◽  
Learning System ◽  
Online Curriculum ◽  
For Profit ◽  
Not For Profit ◽  
Managing Risk

The Canadian Medical Protective Association (CMPA) is a not for profit mutual defence organization with a mandate to provide medico-legal assistance to physician members and to educate health professionals on managing risk and enhancing patient safety. To expand the outreach to its 72,000 member physicians, the CMPA built an online learning curriculum of risk management and patient safety materials in 2006. These activities are mapped to the real needs of members ensuring the activities are relevant. Eight major categories were developed containing both online courses and articles. Each course and article is mapped to the RCPSC's CanMEDS roles and the CFPC's Four Principles. This poster shares the CMPA’s experience in designing an online patient safety curriculum within the context of medico-legal risk management and provides an inventory of materials linked to the CanMEDS roles. Our formula for creation of an online curriculum included basing the educational content on real needs of member physicians; using case studies to teach concepts; and, monitoring and evaluating process and outcomes. The objectives are to explain the benefits of curricular approach for course planning across the continuum in medical education; outline the utility of the CanMEDS roles in organizing the risk management and patient safety medical education curriculum; describe the progress of CMPA's online learning system; and, outline the potential for moving the curriculum of online learning materials and resources into medical schools.

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