Has the Affordable Care Act reduced the differentiated value of services provided by Not For Profit hospitals that special tax exemptions will be eliminated? Therefore, the existence of Not For Profit hospitals will disappear and all hospitals will be considered For Profit. To appreciate how this is a real possibility, it is important to understand the purpose of a Not For Profit hospital. The purpose of a Not For Profit hospital is to serve families in the community that cannot afford medical care. In exchange for this charity care, Not For Profit hospitals receive exemption from federal and state corporate income taxes, exemption from state and local property taxes, and access to tax-exempt bond financing. In addition, charitable contributions to Not For Profit hospitals are tax deductible for the donor. This allowed Not For Profit hospitals to live up to their mission of serving the community and being financially viable.
Now that the Affordable Care Act will provide