One could argue that every hospital benefits a community, but so does every other business that provides services to community members. They don’t all receive tax benefits that are equivocal to that of a charity. While there are some hospitals that run purely from charitable contributions, most are businesses capable of making a profit; and therefore, they do not deserve property or income tax exemptions. No only should hospitals not receive the tax exemptions of charitable organizations, but they should not be even considered a charity unless they are purely charitable. This will increase the drive that hospitals have to reduce costs and increase competitiveness, which will trickle down to other predatory businesses that thrive in the medical setting.
Most hospitals are fee-for-service, meaning they charge for what they provide. This means they are expecting a profit. The not-for-profit status of many of these organizations has been called into question, as it seems they are reallocating assets to make their hospitals seem more charitable than they are. As a result, predatory organizations such as pharmaceutical companies, make loads of money from taxpayers. Due to the tax exemptions hospitals can receive, these companies are free to profit from the increased availability of funds to the hospital. That is why there should not be any standard to meet tax-exempt status other than that of full charity. Hospitals are not scrutinizing the prices of equipment and drugs, so the prices are going up.
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The idea that hospitals don’t help the community is absurd, but they do not help without expectations of profit. Therefore, unless a hospital is purely run on charity, it should not receive property or income tax exemptions. This only leads to the maximization of healthcare costs and disproportionate care to those who have more economic resources. Providing tax exemption to facilities who accept payment for their services perpetuates the high healthcare costs problem.
