NON PROFIT – DOES IT MATTER?

There has been a great deal of press in our local papers (and National) about non-profit health care providers….

So What essentially is the difference between non-profit or for profit?

Non-Profit:

  • Tax Exempt – does not pay property taxes
  • No Shareholders
  • Has a Board of Directors (which is usually not paid for service)
  • Must have a charitable or religious purpose
  • Does not have a legal duty to make money for shareholders

For-Profit

  • No special taxes (must pay like other businesses)
  • Corporation with goal to make money above and beyond salary
  • Legal Duty to make money for shareholders

So what does it mean in practice? Well – for some facilities, not much. For others it could mean cost-cutting measures are in place to maximize profits. How can you as the consumer tell if a nursing home is non-profit? go to www.medicare.gov – and look it up.

Its not a scientific study, but something to think about – in 3 years, we haven’t filed a single negligence case against a Non-Profit Nursing Home in VA!!!

See more about the local debate

http://link.brightcove.com/services/link/bcpid1753162320/bctid1757572975

Lauren Ellerman

Lauren Ellerman

In 2011, Lauren Ellerman was named "Young Lawyer of the Year" by the Roanoke Bar Association for her work in the community. To speak with Lauren about your personal injury case, contact her at lellerman@frithlawfirm.com.