Many of most profitable hospitals are nonprofits

Posted at 4:07 PM, May 02, 2016
and last updated 2016-05-02 16:07:39-04

CHICAGO (AP) -- Researchers analyzed why some hospitals make big profits and found a surprise: Seven of the 10 most profitable hospitals are nonprofits, including one in Urbana, Illinois, where hospital tax exemptions are headed for a contentious court battle.

The "Top 10" list accompanies a study published Monday in the journal Health Affairs. The analysis is based on federal data from 2013 on nearly 3,000 hospitals.

The research on hospital profits comes as city officials in several states are pressuring hospitals to justify their tax-exempt status.

In the study, the top money-makers include Carle Foundation Hospital. In January, an Illinois state appeals court ruled a law allowing hospitals to avoid taxes is unconstitutional. The Illinois Supreme Court is expected to review the decision, on appeal by Carle Foundation Hospital.