Did You Know Centra Is a Not-for-profit Healthcare System?
Centra IS a not-for-profit healthcare system. If this fact is lost on you, you are not alone. You might have heard this stated in some financial report out but the impact of what it actually means to be a not-for-profit and the resulting benefits to our communities is not front-page news. We credit Pat Young, Director of Centra’s Community Health Department, for all the education she provided to help us learn more.
For Profit vs. Not-For-Profit/Non-Profit
First, let’s start with the basic distinction between for-profit and not-for-profit/non-profit. If you're a not-for-profit, you have tax-exempt status with the IRS. However, with that tax-exempt status, hospital systems are required to give back to the community through a process called Community Benefit. If you're a for-profit hospital, you are not tax-exempt. You don't have tax savings, and you don't have the Community Benefit requirements that come with being a not-for-profit.
What Are the Benefits for Our Community and What Is Community Benefit?
One of the biggest examples of benefit to our community comes with the requirement to have some level of financial assistance for those who are not able to pay, whether they're uninsured, or underinsured. Likewise, “Community Benefit” can range from activities in the community that benefit a certain vulnerable population, like health screenings, or discounted services. Conducting research as a health system and training health professionals are also examples of Community Benefit.
Where Does The Community Health Department Come In?
All the work done through our Community Health Department is considered a Community Benefit. Their work largely revolves around conducting the Community Health Needs Assessment every three years. Results from the CHNA are used in developing a strategic plan which then drives our decisions for giving back to the community through sponsorships and grants. Pretty interesting, right?
On the blog over the next few months, we are going to delve into the work of Centra’s Community Health Department and the generous giving that supports our communities by aiming to meet them where they are and partner with them to live their best lives. Stay tuned!
For more information about the CHNA visit: CentraHealth.com/CHNA
For more information about the Community Health Department visit: CentraHealth.com/AboutCentra/community-health
To hear more of our conversation with Pat Young tune into Centra Scripts