Nonprofit Health Care
- Share via
I was interested in your paragraph in the Kaiser health care article (May 10) stating that “As a nonprofit organization with no shareholders for whom to put dividends aside . . . (Kaiser) reinvests earnings to build or improve hospitals and clinics and to buy equipment.”
On the other hand, the health maintenance organization FHP International Corp. reports that its third-quarter profit rose to $14.4 million, or 43 cents a share. That income probably results to a large extent from taxpayer-supported Medicare patients.
We seem to be the only country where health organizations are traded on the stock market and profits made for shareholders. I have yet to see a discussion on profit versus nonprofit HMOs about exploring health costs.
G. BORDING MATHIEU
Laguna Beach
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
