btw, this hospital is a NON-PROFIT. The best hospital of its kind in the country is a NON-PROFIT.
Now how is that possible when conservatives claim that the only path to excellence must include a profit incentive?
Um.... do you know what the difference is between a non-profit, and a for-profit company is?
Nothing. At least nothing substantial.
A non-profit company or business, still has to advertise, still has to buy goods, and sell service, and collect a 'profit' over the cost of the goods sold or service provided. They have to generate an operating surplus, just like any other business on the face of the earth.
A hospital that does not make a profit on the goods sold, closes. Just like any other business.
Most non-profit CEOs make large six figure incomes, many over $200K a year. There are dozens that make over $500K a year. I just read that the non-profit Ludwig Institute for Cancer Research CEO is paid $820,000 a year.
And by the way, unlike for-profit companies, that's all cash from the business. CEOs of for-profit companies are generally paid with company stocks. That's why you see the CEO of walmart gettings 'paid' millions.
But none of them are actually getting 'millions' from the company. They are getting paid in company stock, which costs the company almost nothing. The CEO can then sell the stock to other people, and it's those people buying that CEOs stock, that pays him the 'millions'.
But when you see the CEO of a non-profit earning $500K or $800K, that's all cold hard cash from the business.
So what exactly is the difference?
Well we could go into the legal defined difference, for-profits operate for self-benefit, and non-profits benefit for the good of the community....
Again, no one actually does this. It doesn't really matter what the laws says your intentions are supposed to be. Again the CEO of the Ludwig Institute for Cancer Research is not driving around in a beat up Chevy, because he is doing it for "the good of the community". No, he's driving a luxury land yacht, like the highly paid CEO of any major corporation.
So there really is only one major difference.
Investors.
The profits of a non-profit business, can't be doled out to investors. That might sound good, but there's a trade off.
How many of these specific hospitals are there? ONE.
Well what about the rest of society? 300 Million people can't all use ONE hospital in New York. Why don't they open more hospitals?
Well because that would require capital... which would require capital investors.... which would require investors.... which would require a return on investment.... which is prohibited for non-profit company.
There is a trade off.
Want to know why Walmart has 2.2 Million employees, and over a 11,000 locations? Investors. People invested into Walmart, which allowed them to grow the company to serve more people, and provide more jobs.
The Hospital for Special Surgery, can't do that. Thus only a small select few people in the world can benefit from that Hospital.
And as much as people make a big deal of "well at least they are not giving their profits to investors".... yeah... but they have many other 'returns' on their 'charitable investment' into the Hospital.
You generally don't see big names splashed on the walls of Ford manufacturing plants, of the investors who paid to have it built.
Obviously you do for philanthropists.
And that's likely the very least that non-profits do as a 'return on investment'.
This is David Koch at a charity ball for Food Allergy Institute at Mount Sinai School of Medicine. Over a million dollars was spent on the ball, and of course many of the super wealthy went to the ball, including David Koch and his wife and son.
Awards were given out, honor was given, people were photographed and placed into booklets of top philanthropists, and I'm sure Koch was listed. This may have even been the photo used, who knows.
And of course, as this thread proves, Koch was given tons of positive publicity by the Hospital.
So this idea that non-profits do not spend anything on their 'investors' like for-profit companies do, is just wrong. They spend MILLIONS on their investors. It's just not as much as for-profit companies, but the amount 'invested' is smaller too.
Instead of investing in hundreds of Special Surgery hospitals, Koch built one wing of one. Instead of billions of dividends paid back, it was millions just on Koch and other specific philanthropists.
But the bottom line is... there really isn't any differences between for-profit and non-profit. They both operate the same way.