Nonprofit

big pharma

By Tara Fugate

MNA Strategic Researcher

The vast majority of hospitals in Minnesota operate as not-for-profit organizations, which means they are exempt from most local, state, and federal taxes. This privileged tax status is meant to be an acknowledgement of the “community benefits” they provide. However, the definition of community benefit is loose, and guidelines on appropriate levels of community benefit spending are sparse both federally and at the state level.

In Minnesota, there is no law that specifically requires not-for-profit hospitals to provide measurable community benefits.[1] There is, however, a state level reporting requirement on community benefit spending that has existed since 2007.
… Read more about: What is Community Benefit Spending And Why Does It Matter for Not-For-Profit Hospitals?  »

By Tara Fugate

MNA Strategic Researcher

 

Something that still manages to shock a lot of people in the US is the growing number of similarities between nonprofits and for-profit hospitals. In 2013, 7 of the 10 most profitable hospitals in the country were classified as nonprofit. A 2013 study published in Health Affairs, examined factors contributing to hospital profitability. The study examined data from Medicare Cost Reports submitted by 2,993 acute care hospitals and produced a list of the top ten hospitals in the country with the highest profit from patient care (for fiscal year 2013).
… Read more about: Your Guide to the World of Nonprofit Finance-part 1  »