Respond to 5 classmates Coursework Example | Topics and Well Written Essays - 500 words

Respond to 5 classmates - Coursework Example Providing services to the local communities encourages health-promotion, which results in achieving the goal of encouraging primary-care (Nowicki, 2011). â€Å"Nonprofit hospitals are more likely to offer unprofitable services and to locate in areas with a higher proportion of low-income and uninsured residents† (Byrne, 2014). A drawback observed by Byrne (2014) is that hospitalists appear to earn lower wages then their for-profit counterparts, in a sense donating some of their time to the community. The hospital loses it’s ability to divide the profits amongst it’s employees beyond what’s considered â€Å"reasonable† salaries. Not-for-profit hospitals are essentially designated to â€Å"engage in exclusively charitable purposes† (Nowicki, 2011). Healthcare has evolved into one of the most important issues in the contemporary times. The tax-exempt status of not-for profit health organizations become important as they are able to reach wider segment of people who require quality healthcare at accessible prices. Indeed, the tax exemption helps them to buy quality healthcare goods at lower prices which helps the organizations to maintain the high standard of effective healthcare delivery to the poor and the needy, especially the uninsured population. At the same time, Rosenthal (2013) asserts that the tax-exempt status is abused by many non-profit health organizations. This is major drawback that needs to be constantly monitored by the authorities so that the intended purpose of providing tax exemption can be justified for treating the needy and making quality and efficient healthcare delivery accessible to the target population who cannot afford increasing cost of healthcare. A major benefit for a hospital having tax exempt status is being able to issue tax-exempt bonds; the yields are 4-5% below taxable bond yields. Tax exempt hospitals work under the pretense that they are doing something the government would have to be