The Kerfuffle About ‘Non-Profit’ Profits

When Health Affairs published its article on the “most profitable” acute care hospitals, it created quite a stir (see Non-Profit Hospitals Dominate Top 10 Most Profitable Ranking In 2013). The focus of the discussion? The "top ten" list was dominated (seven of ten) by non-profit facilities. I thought most of the discussion that followed this article missed the point. The issue of "non-profit profitability" is an important one – with what I see as three key issues:

There is a difference between “non-profit” and “tax-exempt”
Non-profits do need to make profits
Tax-exempt non-profits . . .