A Number of Hospitals Have Converted from Nonprofit to For-Profit

question 6

Essay

A number of hospitals have converted from nonprofit to for-profit status. What are the benefits to this conversion? What impact might conversion to C corporation status have on hospital/community relations?

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Definitions:

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, according to standard accounting principles.

Economic Profit

The difference between the total revenue generated by a business and the total opportunity costs of all resources used.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing excess return over opportunity costs.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.