Nonprofit Hospitals Among United States’ Most Profitable Institutions; More Than $150M Raked In Annually

Non-profit hospitals have a charitable purpose and are commonly associated with a religious group. A recent study, however, found that non-profit hospitals in the United States earn hundreds of millions compared to their for-profit counterparts.

Seven out of the 10 top-earning hospitals in the U.S. are non-profit institutions that raked in above $150 million in 2013. The study, which was published in the journal Health Affairs, was conducted by researchers from the Johns Hopkins Bloomberg School of Public Health and Washington and Lee University.

Hundreds Of Millions Earned

Claiming the highest spot in the top 10 is Gunderson Lutheran Medical Center in La Crosse, Wisconsin, earning a whopping $302.5 million in 2013, the Washington Post reported. Following close behind is Sutter Medical Center in Sacramento, California, with a profit of $271.9 million from patient care services.

Placing at the third and fourth spot are Stanford Hospital and Clinics ($224.7 million) and Norton Hospital ($211.2 million). The University of Pennsylvania Hospital is at the seventh spot with $184.5 million; the Sacred Heart Medical Center, Riverbend at ninth place with $171.2 million; and the Carle Foundation Hospital at the 10^th spot with $163.5 million earnings.

Excess Revenue

Ge Bai, the study's co-author, said all hospitals should earn money, but others are raking in over-the-top profits, according to the Washington Post. The study, however, didn't take into account the profits and activities that came from outside of patient care.

Gerard Anderson, the study's lead author, said it's unnecessary for non-profit hospitals to get substantial revenue, the news outlet noted. Nonprofit hospitals enjoy state and federal tax breaks because of their charitable nature that benefits the community.

The University of Pennsylvania Hospital claimed that extra revenue from patient care goes to the funding of the organization's other programs like neonatal intensive care units and trauma center. The excess profit also funds biomedical education, research and training of the university's medical school.

Southwest Airlines' Money Grant to Non-Profit Hospitals

Southwest Airlines, a major U.S. airline, has given a $3.2 million grant to 73 non-profit hospitals, Healthcare Finance reported. The hospitals will divide the money among them.

The Transportation Grant Program will provide free roundtrip transportation to caregivers and patients in need of specialized medical care and clinical trials. The hospitals, including cancer and children centers, will roll out distinctive guidelines for the management of airline tickets.

The Transportation Grant Program began in 2007. Since then, it has provided over $19.6 million in free air travel to institutions in 26 U.S. states.