A new study announced by US News & World Report sites nonprofits earn large sums through regional monopolies and also high prices.
According to US News & World Report, “Seven of the 10 most profitable U.S. hospitals each cleared more than $160 million in 2013 from patient care services despite their having nonprofit status, according to a new report.”
This was drawn from 2013 data from the Centers for Medicare and Medicaid Services that analyzed 3,000 acute care hospitals, of which 59 percent were nonprofit, 25 percent were for-profit and 16 percent were public.
The study, led lead researcher Gerard Anderson of Johns Hopkins to believe that the most profitable hospitals in the country establish monopolies, allowing them to mark up prices charged to private insurers.
“The system is broken when nonprofit hospitals are raking in such high profits,” Anderson said in a press release. “The most profitable hospitals should either lower their prices or put those profits into other services within the community. We need to develop incentives that allow all hospitals to make a fair profit while at the same time keeping prices reasonable.”
For more information please see http://www.usnews.com/news/articles/2016-05-02/study-nonprofit-hospitals-generate-the-most-profit.