A nonprofit hospital can also be referred has a voluntary hospital. Nonprofit hospitals have to make a profit in order to survive the long term. It is illegal for them to distribute the profits for the benefits of any individual. A nonprofit hospital is also responsible for the tax exempt and to operate only for the good of the people. Most of the time nonprofit hospitals are referred has a mission driven, culturally rich organizations. Nonprofit provide a safety net and take up the responsibility to serve the uninsured. The nonprofit has to be able to keep up with the taxes exempt to follow the federal and state regulations. The hospital cannot afford to pay more than the fair is of the market value in transactions with the private providers …show more content…
A stark law is where a physician cannot give the patient certain services to be reimbursed by the federal healthcare programs. The physician will have ownership interest and compensation arrangement. Such as clinical laboratory services, physical therapy services, occupational therapy and outpatient speech language, pathology services. State regulations are where the regulatory are often overseen nonprofit hospitals. This is different for every single state. Nonprofit hospitals have to send a report to the states department of health care and the health commission. Some nonprofit hospitals are voluntary to report to the state hospital associations or other trade organizations. Many people look at nonprofit hospitals as a charity organization who provide services for the people who cannot afford to pay. Many nonprofit sometimes fail to provide people with the valuable services. Nonprofit does not mean that they make no profit. They will invest in hospitals to form a new facilities and equipment. By investing they will expand their staff and offer more