Not-for-profits: business basics for survival.
Many not-for-profit hospitals are struggling to keep their doors open. Although executives often contend that they are not playing on a level field, the fundamental cause is the hospital's failure to earn an excess of revenue over expenses. The tax exemption enjoyed by a not for profit can be a tremendous advantage. Some may argue that uncompensated care negates that benefit, but uncompensated care is a problem for the industry, not just not-for-profit institutions. The real issue at stake is the not-for-profit mentality--a belief that a tax-exempt business is not supposed to make money. On the contrary, our goal is to provide much-needed services to the community, and to do that well, we must make money. When solid business practices are followed, a hospital will be able to provide the basic healthcare services needed with positive financial results.
Krenek
Bryant H
BH
Memorial Health System of East Texas, Lufkin, Texas, USA.
D003159:Community-Institutional Relations; D017598:Efficiency, Organizational; D006788:Hospitals, Voluntary / Q000191:economics* / Q000458:organization & administration*; D017664:Uncompensated Care; D014481:United States