Question

What ethical difficulties are there in confronting tax-exempt hospitals? Please be detailed

Answer 1

Ans) The rationale for giving private, nonprofit hospitals tax exemptions:

- To reward these hospitals for offsetting an obligation that would otherwise be incurred by the government (such as teaching programs, charity care, and maintaining 24/7 emergency room services)

Ethical difficulties are there in confronting tax-exempt hospitals:

- Large gifts to not-for-profit (tax-exempt) health services organizations do not suggest a conflict of interest, whereas a large gift to a manager of such an organization is likely to be ethically unacceptable.

The difference is that:

- Managers fail in their duty of loyalty to the organization by accepting gifts.

- Organizations are ethically neutral entities in the eyes of the public and law.

- Gifts to the organization benefit both the patients and the general public.

- No direct individual relationship is established by giving to the organization.