Non-profit hospital
Encyclopedia
A non-profit hospital, or not-for-profit hospital, is a hospital
which is organized as a non-profit corporation. Based on their charitable purpose and most often affiliated with a religious denomination
they are a traditional means of delivering medical care in the United States. Non-profit hospitals are distinct from government owned public hospital
s and privately owned for-profit hospital
s.
In 2003, of the roughly 3,900 nonfederal, short-term, acute care general hospitals in the United States, the majority—about 62 percent—were nonprofit. The rest included government hospitals (20 percent) and for-profit hospitals (18 percent).
Courts generally have rejected challenges to the tax-free status of non-profit hospitals by indigent patients who are forced to pay for services on the grounds that the question is a matter for the IRS and that the indigent patients lacking standing
.
Business and Professions Code section 2400, within the Medical Practice Act, provides in pertinent part:
"Corporations and other artificial entities shall have no professional rights, privileges, or powers."
There are some exceptions; for example: professional medical corporations, University of California
hospitals, county hospitals, narcotic treatment programs, some nonprofit organizations such as community clinics, and Knox-Keene-licensed HMOs are allowed to employ physicians directly.
California Health & Safety Code section 1206(I) exempts from licensure clinics operated by a nonprofit corporation (such as a medical foundation) if they meet certain requirements, including conducting medical research and health education, and
providing medical care through a group of 40 or more independent contractor physicians and surgeons. The foundation's board must consist of physician, hospital and local community representatives, with affiliated physicians making up no more than 20 percent of the board's members.
It is for these reasons that organizations such as the Cedars-Sinai Medical Center
restructured in 1994 to become the Cedars-Sinai Health System, comprising the Cedars-Sinai Medical Care Foundation, Physician-Hospital Organization and Cedars-Sinai Medical Center."
, in Grand Rapids
Hospital
A hospital is a health care institution providing patient treatment by specialized staff and equipment. Hospitals often, but not always, provide for inpatient care or longer-term patient stays....
which is organized as a non-profit corporation. Based on their charitable purpose and most often affiliated with a religious denomination
Religious denomination
A religious denomination is a subgroup within a religion that operates under a common name, tradition, and identity.The term describes various Christian denominations...
they are a traditional means of delivering medical care in the United States. Non-profit hospitals are distinct from government owned public hospital
Public hospital
A public hospital or government hospital is a hospital which is owned by a government and receives government funding. This type of hospital provides medical care free of charge, the cost of which is covered by the funding the hospital receives....
s and privately owned for-profit hospital
For-profit hospital
For-profit hospitals, or alternatively investor-owned hospitals, are investor-owned chains of hospitals which have been established particularly in the United States during the late twentieth century. In contrast to the traditional and more common non-profit hospitals, they attempt to garner a...
s.
In 2003, of the roughly 3,900 nonfederal, short-term, acute care general hospitals in the United States, the majority—about 62 percent—were nonprofit. The rest included government hospitals (20 percent) and for-profit hospitals (18 percent).
Courts generally have rejected challenges to the tax-free status of non-profit hospitals by indigent patients who are forced to pay for services on the grounds that the question is a matter for the IRS and that the indigent patients lacking standing
Standing (law)
In law, standing or locus standi is the term for the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party's participation in the case...
.
California law
The California The Medical Practice Act, Business and Professions Code section 2052, provides: "Any person who practices or attempts to practice, or who holds himself or herself out as practicing...[medicine] without having at the time of so doing a valid, unrevoked, or unsuspended certificate...is guilty of a public offense."Business and Professions Code section 2400, within the Medical Practice Act, provides in pertinent part:
"Corporations and other artificial entities shall have no professional rights, privileges, or powers."
There are some exceptions; for example: professional medical corporations, University of California
University of California
The University of California is a public university system in the U.S. state of California. Under the California Master Plan for Higher Education, the University of California is a part of the state's three-tier public higher education system, which also includes the California State University...
hospitals, county hospitals, narcotic treatment programs, some nonprofit organizations such as community clinics, and Knox-Keene-licensed HMOs are allowed to employ physicians directly.
California Health & Safety Code section 1206(I) exempts from licensure clinics operated by a nonprofit corporation (such as a medical foundation) if they meet certain requirements, including conducting medical research and health education, and
providing medical care through a group of 40 or more independent contractor physicians and surgeons. The foundation's board must consist of physician, hospital and local community representatives, with affiliated physicians making up no more than 20 percent of the board's members.
It is for these reasons that organizations such as the Cedars-Sinai Medical Center
Cedars-Sinai Medical Center
Originally established as Kaspare Cohn Hospital in 1902, Cedars-Sinai Medical Center is a non-profit, tertiary 958-bed hospital and multi-specialty academic health science centre located in Los Angeles, California, US. Part of the Cedars-Sinai Health System, the hospital employs a staff of over...
restructured in 1994 to become the Cedars-Sinai Health System, comprising the Cedars-Sinai Medical Care Foundation, Physician-Hospital Organization and Cedars-Sinai Medical Center."
Links
Mary Free Bed Rehabilitation HospitalMary Free Bed Rehabilitation Hospital
Mary Free Bed Rehabilitation Hospital was started and is led by the Mary Free Bed Guild of Grand Rapids, MI. This hospital is currently an 80-bed, non-profit organization that provides rehabilitation for people of all ages...
, in Grand Rapids
Grand Rapids, Michigan
Grand Rapids is a city in the U.S. state of Michigan. The city is located on the Grand River about 40 miles east of Lake Michigan. As of the 2010 census, the city population was 188,040. In 2010, the Grand Rapids metropolitan area had a population of 774,160 and a combined statistical area, Grand...