Non-profit Hospital

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 hospitals and privately owned for-profit hospitals.

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.

Read more about Non-profit Hospital:  California Law

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