Nonprofit hospitals are driving up the cost of care
Americans spend more than a trillion dollars annually at hospitals, accounting for about one-third of all national health spending. And nonprofit hospitals are actually reaping in a huge profit, NPR reported.
While the nonprofit status means hospitals can operate tax exempt, hospitals prices grew 42% between 2007 and 2014, the report reads. And many nonprofits may not be contributing enough charity work to justify their tax-exempt status, says Zach Cooper, of the Yale School of Public Health, and colleagues, who recently looked at hospital politics and the correlation to the expensive American healthcare system.
In addition, hospitals are spending hundreds of millions of dollars on lobbying activities and campaign contributions that boosts their political power.
“Studies suggest insurance administration and profits do contribute to wasteful health care spending, but they're just one contributor to a bloated system,” the report reads. “Hospitals, which often escape criticism, are a significant part of the problem.”
See the full story below:
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."