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Nonprofit Hospitals Nationwide Putting Profits Over Patients

Posted by Bobby Brown on January 31, 2023 - 1:39pm


Consumers for Quality Care (CQC), a coalition of advocates, former policymakers, and health advocacy organizations, today released a new batch of Nonprofit Hospital Scorecards spotlighting egregious practices at nonprofit hospitals across the nation that prioritize financial gain over providing critical care to patients in need. Oregon, Washington, Illinois and New Jersey join Montana, Colorado, Pennsylvania, Indiana and North Carolina in receiving a #HospitalFail. CQC is calling on the 118th Congress to take action to ensure these hospitals stop putting profits ahead of the needs of patients.

In exchange for tax-exempt status, nonprofit hospitals are expected to deliver affordable and quality health care to those in their communities who need it most, particularly low-income and vulnerable patients. However, recent investigations by The New York Times and Axios, the documentary InHospitable, and independent research from organizations like Patient Rights Advocate, the Lown Institute, the Center for American Progress, Families USA, Leapfrog and others have found many nonprofit hospitals are implementing policies that prioritize financial gain over patient care.

“Nonprofit hospitals should prioritize serving their communities, not making sky-high profits. These so-called ‘charitable’ organizations receive tax benefits in exchange for providing health care to those who need it most and other community benefits – but as our scorecards confirm, far too many are failing to provide the care their communities need,” said CQC Board Member Donna M. Christensen. “It is past time for Congress to hold them accountable.”

Examples of the types of practices nonprofit hospitals across the country are engaging in include:

  • Saddling low-income patients with bills they never should have received and then hounding those unable to pay with debt collectors;
  • Setting up roadblocks to accessing financial assistance;
  • Taking advantage of massive tax breaks, which in some states amounts to more than $1 billion more than they are spending on charity care and community benefits; and
  • Raking in excess revenue by drastically marking up the cost of care.

“Nonprofit hospitals across the country are saddling vulnerable patients with big bills when they should actually be providing them with free and reduced cost care. Coupled with weak policies to protect consumers from medical debt in most states, patients are definitely getting the short end of the stick,” said CQC Board Member Jim Manley. “These hospitals should put patients and their care first, and they should be held accountable when they don’t.”