What makes hospitals non for profit. Identify a specific hospital and provide an explanation.

Citizens aesculapian centralize is a non for profit, short term shrill care facility controlled by the county government and is therefore considered lying-in loose under section 501(c)(3) of the immanent tax gross Service. Citizens is in the main renderd their funding through state government, non fractionisan/non governmental donations, and plebeian long-suffering taxation. Due to their non for profit status Citizens is required to oblige trinity main requirements set forth by the Internal Revenue Service. First they are required to be organized and ruminate exclusively in compliance with their exempt purposes, (The Internal, 2007). Citizens medical Center complies with this condition in that they are solely mean to provide medical and educational services for the community, regardless recompense ability, of Victoria, TX and the b ordinate counties. Secondly, they are required to use all tax tax tax revenue for the purpose of the company and ensure no ne of the profit is provided to private shareholders or individuals, (The Internal, 2007). Citizens fulfills this requirement in that they are considered ?community surrender? where their resources stay in the immediate area with the excess revenue being reinvested in the infirmary, its technology, and the employees. Lastly, they ?may not be an do by organization.? In other words, the organization ?may not mother to influence legislation as a substantial break of its activities or participate in any campaign activities,? (The Internal, 2007).

Citizens has no affiliation with any political campaigns and has not rece ived funds in hand from any partisan or po! litical donations. Since these requirements are abided by, Citizens Medical Center is considered a tax exempt non profit organization. If Citizens is a non for profit then where do they encounter funds to operate? According to the American Hospital Directory, in 2007 Citizens Memorial hospital receives 98.3 percent of their income from gross patient revenue totaling 400,084,761 dollars. The remaining 1.7 percent, or... If you requirement to get a full essay, order it on our website: OrderCustomPaper.com

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