For-Profit Hospital

How It Works

For-profit hospital chains include HCA Healthcare (the largest, with 182+ hospitals), Tenet Healthcare, Community Health Systems, and Universal Health Services. For-profit hospitals pay taxes and distribute profits to shareholders. Research generally shows that for-profit hospitals have higher charges and margins compared to nonprofit hospitals, though quality differences are mixed. For-profit hospital chains have grown through acquisitions, often purchasing struggling community hospitals. Their financial performance is publicly reported through SEC filings, providing transparency that nonprofits lack.

Related Terms

• Nonprofit Hospital — A hospital organized as a tax-exempt entity — making up about 56% of U.S. community hospitals — that reinvests revenue into the community in exchange for federal, state, and local tax exemptions.
• Chargemaster (Charge Description Master) — A hospital's master list of prices for every item and service — from aspirin to surgery — typically containing tens of thousands of line items with prices that bear little relation to actual costs.