How much money do hospitals have to make? Well it depends…

I get asked by National Accounts Executives all the time how much money do hospitals have to make?

The question insinuates that non-profit hospitals should not be beating suppliers up on costs when they are operating in the black. Its is a pretty interesting topic for discussion.

Having not-for-profit status, after all, is in consideration for providing free care to those in need. So the real question is:

How much care does a hospital have to provide for free to qualify for not-for-profit status?

This is a little harder to answer and its complicated! But the AHA did just report that in 2016 hospitals reported $38.3b in uncompensated care costs. This is down from a high of $46.4b in 2013.

Check out this release by the AHA. If you get your mind around this you will be way more conversational with a hospital CFO!

Click here for full release

Speak Your Mind

*