What it means is that they are considered charities by the Internal Revenue Service (as opposed to being owned by investors, like for-profit hospitals). These hospitals proliferated after federal tax rules about 50 years ago made it easier to qualify for tax exemptions. So why are nonprofit hospitals behaving in ways that seem to focus more on dollars than patients? This looming likelihood, plus financial challenges from the pandemic, a severe worker shortage, rising inflation and stock market volatility have put nonprofit hospitals in survival mode. And you would think that focusing on the mission would be the top priority, though boards aren’t doing this consistently.

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Organizations: Internal Revenue Service Locations: United States