As maintain tax-exempt status by participating in any kind

As explained in above questions
that tax exempt status releases the nonprofit hospital from paying taxes and
provide good income to their employees for their services and could use
resources to provide services for the community benefit. In instance, by
providing free medical services to indemnity population, rendering financial
support to the Medicare and Medicaid beneficiaries who are unable to pay for
the services. Moreover, tax-exempt status also encourages more poor patients to
seek treatment from the nonprofit hospital and helps hospital to maintain the
charity care.

In this
technology world, non-profit organization could use money to update the
structure of institution, add more medical technology to provide high quality
care to people who cannot afford to pay for such services in for-profit
hospitals. In addition to it, tax-exempt status will also allow to save the
money to hire more primary care which is a big requirement in United States
Health care system.

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We all know that
everything has pros and cons, therefore, tax exempt status put certain
regulations on non-profit hospitals. These regulations were designed by
Internal revenue services for providing quality of care to poor and low-income
people. Hospital has to maintain tax-exempt status by participating in any kind
of community services, rendering services to Medicaid and Medicare
beneficiaries. In addition to it, they must not be supported by any donation or
any little income from gifts. Moreover, they could not be expecting any reward
or pay for the service they provide to their beneficiaries or other uninsured
population. If Internal Revenue Service’s ever found that any nonprofit organization
is violating any one of these regulations, then it has the right to take away
the tax-exempt status.

On the other hand,
for for-profit organizations, to maintain tax-exempt status they are bound with
some regulations: they have to participate in any community benefit services or
rendering services to Medicare and Medicaid beneficiaries plus must pass integral
part doctrine. In this regulation it has to show that after acquisition with other
hospital both entities are separate and tax bearing entities. Therefore, it will
be ambiguous to say that tax-exempt status is worth to hospitals because it has
advantages as well as disadvantages to both for-profit and non-profit