We should greet the reporting on the country’s “nonprofit” hospital systems’ financial woes with a healthy dose of skepticism. One system has launched and financed 80 for-profit start-ups. Another system partners with a wellness spa, charging $4,000 per night, and co-invests with leading private equity firms.

“Nonprofit” hospitals are obliged to provide charity care and make other investments in their communities to enhance the quality of life and health of their citizens. However, the “IRS doesn’t specify any qualitative requirement … and it faces substantial operational challenges in overseeing these activities. A recent study found no difference in charity care spending between nonprofit and for-profit hospital systems.”

“Seven of the 10 most highly paid nonprofit CEOs in the U.S.-run hospital systems, and their salaries and benefits, amount to tens of millions of dollars per year.”

We pay twice as much per person for health care compared to many other developed countries, yet we fall short on health outcomes in spite of the skill and dedication of millions of health care professionals. Our life expectancy has actually fallen in recent years. We pay more not because of overutilization but simply because prices are higher here. Maybe it’s time for “Medicare For All,” with its much lower administrative costs and much higher satisfaction levels?

If we were laser-focused on prevention, perhaps we could negate the need for so many massive, costly hospital systems that are often nonprofit in name only.

Mary Ann Larson
Bangor