Question

Not-for-profit businesses are generally exempt from local property taxes as well as state and federal income taxes. Should policymakers mandate that not-for-profit healthcare organizations provide indigent (charity care) services equal to the tax benefit received?

Answer 1

Solution:-

Truly, arrangement producers should command that not-revenue driven social insurance associations give poverty stricken (philanthropy care) administrations equivalent to the tax reduction got. Law requires not-revenue driven medicinal services associations to reinvest their wage which is in overabundance of consumption in the association itself. Any tax cuts that the not-revenue driven social insurance association gets make a pay that must be reinvested. The inquiry here is who profits by the reinvestment of the advantages that accumulate because of tax reductions. A plausibility is that expenses could be lessened or administrations can be expanded. Another probability is that specialists and representatives of the not-revenue driven human services association appreciate the advantage by means of expanded compensations or enhanced working conditions.

It will be more significant if officials present strategies and controls requiring the not-revenue driven social insurance associations to reinvest their wage collected from tax cuts in philanthropy care. This is on account of such arrangements will help in guaranteeing that not-revenue driven human services associations are giving satisfactory advantages to their networks in return for their duty exclusion. Duty exclusion ought to be compensation between not-revenue driven social insurance associations and networks.

To accentuate on my stand I will separate between not-revenue driven human services associations and financial specialist claimed medicinal services associations. If there should be an occurrence of financial specialist possessed human services associations refinement between philanthropy care rules and awful obligation (or, in other words treating patients who need sufficient medical coverage) is all around characterized. This isn't so the situation with not-revenue driven medicinal services associations in which such rules are not all around characterized.

Subsequently there is a need to build the responsibility and oversight of not-revenue driven social insurance associations and this should be possible by presentation of arrangements and controls that command not-revenue driven medicinal services associations to give poverty stricken (philanthropy care) administrations equivalent to the tax cut got.

References:

1. Duty absolved healing facilities and network advantage: New headings in approach and practice. Rubin, Singh and Young

2. The Georgia Hospital Accountability Project.