As the public’s trust in the traditional healthcare system declines , nonprofit providers must do a better job of highlighting how they reinvest into the communities they serve, according to one health system CEO.
Rob Allen — CEO of Intermountain Health , which operates 33 hospitals and more than 400 clinics across six states in the Intermountain West — thinks that this could help rebuild Americans’ trust in healthcare, especially given the majority of the nation’s hospitals are nonprofit organizations.
He cited a recent Yale University study that found that over the past 20 years, 95% of for-profit hospital profits have gone to shareholders, whereas nonprofit hospitals’ earnings were reinvested into the community.
“Every penny we generate beyond our cost of operation ultimately