Nonprofit Hospitals Try to Juggle Business and Charity

Nonprofit hospitals have become big businesses, raising debate about whether they provide sufficient “community benefit” and fueling legislative tension over their tax-exempt status, according to the Orlando Sentinel.

Central Florida’s two chief nonprofit health systems, Florida Hospital and Orlando Health, have plowed resources into building sprees and upgraded facilities as they compete for customers. Meanwhile, lawmakers nationwide are questioning how nonprofit hospitals calculate their provision of charity care.

“The question is: What is the nonprofit doing that for-profits are not? We’re giving them a huge tax benefit,” said Jessica Berg, a Case Western University law professor who has studied nonprofit health care. “So what’s the trade-off? You’re not paying taxes, so what are you giving the community?”