Myth – Nonprofit/Tax Exempt organizations can’t earn a profit.

How are they to grow and expand their services and buy new buildings and equipment if they don’t make a profit?

For more information see -

Non-Profit and Tax-Exempt Organizations

http://smallbusiness.findlaw.com/business-structures/non-profit/

Nonprofit Basics:

http://smallbusiness.findlaw.com/business-structures/non-profit/non-profit-basics.html

Becoming a Tax-Exempt Organization

http://smallbusiness.findlaw.com/business-structures/non-profit/non-profit-becoming-tax-exempt.html

Protecting Your Nonprofit Corporation's Tax-Exempt Status

http://smallbusiness.findlaw.com/business-structures/non-profit/non-profit-running.html

Tax Concerns When Your Nonprofit Corporation Earns Money

http://smallbusiness.findlaw.com/business-structures/non-profit/non-profit-earning-income.html

Here are a few questions that I am trying to get to run in the two local editorial sections of the Northern VA Daily and The Winchester Star.

I am writing in concern of the NONPROFIT PARADOX article that appeared in the Winchester Star on January 10^th.  I found the article to be very informative as I am very grateful that Valley Health provides top notch quality care to our regional community which cannot be disputed.  But I have several questions that I would like for a representative from Valley Health to answer so everyone within our regional community can have a better understanding. 

1. Valley Health stated the 2007 “community benefit” of $56million is an increase of 18.3% over 2006 and a jump of nearly 47% over 2005.  The community benefit for 2006 was $47.4million and 2005 was $38.2million.  I researched 2004’s community benefit as it was documented at $59million.  Why was there nearly a $21million (-35%) negative variance in “community benefits” between years 2004 and 2005?

2. Why was Valley Health against the birth of the Winchester Eye Surgery Clinic located at 525 Amherst Street?  I am perplexed by the statement below that was featured in March 2006 of the Quad State Business Journal.  I always thought that competition drives prices lower and a monopoly drives the prices up.
   
   Last year, the Winchester Eye Surgery Clinic applied to the Virginia Department of Health for a certificate of public need (COPN). Despite receiving a letter of opposition from Winchester Medical Center, which has its own Surgi-Center, at which cataract removals are performed, the state agency granted the COPN on December 22, 2006.
   
   "We opposed it because it was a duplication of the services we provide," said Larry Van Hoose, vice president for Valley Health. "Duplication tends to drive health care costs up.”

3. Why does not Valley Health share information within their patient billing information/financial aid policy brochure http://valleyhealthlink.com/portals/2/documents/pt%20billing.pdf  in regards to “charity care” and “uninsured” patient’s options?  I am concerned that when anyone reviews Valley Health’s brochure, the patient’s options for the “charity care” protocols for the indigent and a discount that an “uninsured” patient receives off the “charges” are not very evident.

4. What was Valley Health’s cash, cash equivalents and investments for years 2005, 2006 and 2007 if FY 2004 was in excess of $170milliion? 

In March of 2006, Craig Lewis, CFO for Valley Health, said that $170 million figure has gone up in the last year. "It represents our accumulated reserves, and it helps give us our AA bond rating. We have done well over the years due to the support of the community and our providing quality health care."

In closing, I would greatly appreciate someone’s time to answer these questions so that members of Valley Health’s regional community are more informed as we are concerned citizens.

Donna said :
Why don't you post the article.  I don't want to sign up and get a bunch of junk emails.