I see this confusion come up in just about every discussion about non-profits.
“Profit” and “income” are two entirely different things. All businesses, whether for-profit or non-profit, aim to generate income (i.e make money) so they can further their goals.
Profit is when you take that income and distribute it to shareholders. The main difference between for-profit and non-profit companies is that non-profits cannot do this.
The distinction of “non-profit” means a lot less than most people assume it does.
But one of the ideas of being a non-profit (atleast in my mind) is that they are driven by idea of service to the community. It seems like a lot of hospitals are structured as non-profits, but really with a profit motive (not community service) with the profits being funneled to individuals and stake-holders (in manners that take advantage of the law!).
Basically it's hard to reconcile the fact that hospitals are "non-profit" while also charging what seems excessively for everything.
I haven't looked through financial statements of one of these hospitals, but does anyone else have any experience with doing so and do they actually see that hospitals do need to charge those enormous amounts for everything to run effectively or to survive?
Sure, hospitals have a mission of providing a service to the community. They treat patients.
Non-profit does not mean volunteer. It doesn't mean they don't make money. It never has. Non-profits are businesses. They operate like businesses. Any impression you had that they do anything differently is a misconception.
It is common for people to equate the word "profit" with "making money", and therefore mistakenly assume that "non-profit" must mean they don't make money. But the word here is specifically referring to the ownership of the organizations net-assets: all assets belong to the business itself, rather than it being the equity of shareholders.
Non-profit only means that the company must use it's property for its own organizational goals, and it does not have owners that the property can be distributed to.
> I haven't looked through financial statements of one of these hospitals, but does anyone else have any experience with doing so and do they actually see that hospitals do need to charge those enormous amounts for everything to run effectively or to survive?
From a link someone else posted elsewhere in the comments:
in Madison, WI about 10 years ago, one of the local, non-profit hospitals plunked down $140M cash to build a new wing. didn't ask for donations, or take a loan. non-profit does not mean you don't make money...
https://www.kff.org/other/state-indicator/hospitals-by-owner...