Not-for-profit hospitals are tax exempt. Seven of the ten most profitable U.S. hospitals are nonprofit, according to new research. One hospital, located in Urbana, Ill., is involved in a contentious court battle. The decision could determine whether medical facilities are paying their fair share of taxes.
According to this study, delivery of patient care was a money-loser for 55% of hospitals in 2013, which was the year the study was done. About one-third of these hospitals made some money, up to $1,000 per patient. About 12% of those in the sample research group made more than $1,000 per discharged patient. The highly profitable hospitals were mostly for-profit corporations. In this group were Medical City Dallas Hospital in Texas and Swedish Medical Center in Englewood, Colo.
The not-for-profit hospital Carle Foundation Hospital in Illinois claimed tax exemption, but state appeals court in January 2016 ruled Illinois law allowing hospitals to avoid taxes is unconstitutional.