What makes hospitals non for profit. Identify a specific hospital and provide an explanation.

Citizens aesculapian Center is a non for profit, short term abrupt care facility controlled by the county government and is therefore considered task exempt under section 501(c)(3) of the immanent Revenue Service. Citizens is generally provided their funding through state government, non fractionisan/non political donations, and plebeian patient taxation.

Due to their non for profit status Citizens is required to oblige three main requirements set forth by the Internal Revenue Service. First they are required to be organized and forge exclusively in compliance with their exempt purposes, (The Internal, 2007). Citizens medical Center complies with this condition in that they are solely mean to provide medical and educational services for the community, regardless recompense ability, of Victoria, TX and the surrounding counties. Secondly, they are required to use all tax revenue for the purpose of the company and ensure none of the profit is provided to head-to-head shareholders or individuals, (The Internal, 2007). Citizens fulfills this requirement in that they are considered ?community have? where their resources stay in the immediate area with the excess revenue being reinvested in the infirmary, its technology, and the employees. Lastly, they ?may not be an treat organization.? In other words, the organization ?may not cause to influence legislation as a substantial part of its activities or participate in any campaign activities,? (The Internal, 2007).



Citizens has no affiliation with any political campaigns and has not received cash in hand from any partisan or political donations. Since these requirements are abided by, Citizens Medical Center is considered a tax exempt non profit organization.

If Citizens is a non for profit then where do they obtain funds to operate? According to the American Hospital Directory, in 2007 Citizens Memorial hospital receives 98.3 percent of their income from gross patient revenue totaling 400,084,761 dollars. The remaining 1.7 percent, or...

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