More than half of the nation’s 5,000 hospitals operate as not-for-profit entities. In theory non-profit hospitals get an exemption from income tax, property tax, sales tax and get preferential financing because they provide a public service to the communities in which they operate. I worked for a large non-profit hospital system years ago and a financial analyst did the math and estimated our tax exclusion was worth something like $100 million a year. In return for the huge tax advantage all the hospital had to do was provide between 4% and 5% of net revenue in charity care for low-income patients.
Category: Doctors & Hospitals
340B Explained
This is priceless:
Thanks to 340B, Richmond Community Hospital can buy a vial of Keytruda, a cancer drug, at the discounted price of $3,444… But the hospital charges the private insurer Blue Cross Blue Shield more than seven times that price — $25,425, according to a price list that hospitals are required to publish. That is nearly $22,000 profit on a single vial.
Monday Links
- How are state universities just like hospitals? Unflattering.
- More empirical evidence of their similarity. Also unflattering. (NYT, gated)
- Fraudsters may have stolen $45.6 billion from the nation’s unemployment insurance program during the pandemic.
- The official child poverty rate is 15.3%; but if you count all the transfers programs, the actual poverty rate is about 2%. (WSJ, gated)
- Sitting all day can erase the benefits of a workout.
Tuesday Links
- Climate anxiety is a mental health problem.
- Biden: the pandemic is over, but not his emergency Covid powers.
- IRS is about to end the Obamacare “family glitch” by re-wring then law. (gated)
- The CDC has lost the public’s confidence. Is the answer to give it more money?
- The 340b program was supposes to support drug therapy for low-oncome patients. Hospitals are using it to rip us off.
- Why don’t men get more vasectomies?