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?
- 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
- 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