Schmidt, Sethi & Akmajian Blog

The Problem with Nonprofit Hospitals

Posted by Peter Akmajian | Jan 30, 2023 | 0 Comments

As a personal injury law firm, we interract with clients every day who have sustained serious injuries and have to get medical treatment at hospitals. With the complexities of insurance and the rising cost of medical care, we think it's important to keep the public aware of different topics surrrounding healthcare.  Last week, the New York Times discussed the manipulative nature of nonprofit hospitals, and how a system that was meant to support low income communities has turned into one of massive profit for the already wealthy. You can listen here.

Nonprofit hospitals are tax-exempt entities that are supposed to operate for the benefit of their communities. Recently, however, the companies that own these hospitals have found shortcuts and loopholes to bring in millions while enjoying the benefit of not paying taxes. This includes tactics that deceive low income patients into paying bills that the patients aren't supposed to be paying, and setting up sattelite facilities in rich communities at the expense of the original facility stationed in a poorer community. These tactics come at a cost of increasing the costs and decreasing the resources available to low-income families, which was supposed to be the primary purpose for the establishment of nonprofit hospitals to begin with.

Ultimately, the discussion on The Daily highlights the complex nature of nonprofit hospitals and the need for greater transparency and accountability in their operations. The episode  serves as an important reminder of the role these organizations play in our healthcare system and the need for ongoing examination and critique of their operations.

About the Author

Peter Akmajian

Peter Akmajian is a trial lawyer with 30+ years of experience and 40 jury trials in Tucson, Phoenix, Yuma, Bisbee and Nogales under his belt.  These trials have mainly involved serious personal injury, medical malpractice and wrongful death.  He was a civil defense lawyer for many years before ma...


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