Non-Profit Public Hospital (NPPH) is an acute care facility with 200 beds. For-Profit Corporately Owned Hospital (FPCOH) has 300 beds.

Examine the income statement for both organizations.

1. Comment on the net income for both hospitals (compare & suggest reasons for the differences).
2. Why is income tax dramatically different between the two facilities?

(2 points)

Income Statements for NPPH & FPCOH, 2020.Income StatementNPPHFPCOH Gross Patient Revenue$1,221,434,544 $2,843,116,376 - Deductions from Revenue$970,838,182 $2,298,293,987 Net Patient Revenue$250,596,362 $544,822,389 + Other Operating Revenue$5,862,115 $2,207,594 Total Operating Revenue$256,458,477 $547,029,983 - Operating Expenses$254,536,651 $460,956,334 Net from Operations$1,921,826 $86,073,649 + Non-Operating Revenue$15,060,694 $10,547,139 - Non-Operating Expense$844,530 $152,173 - Income Taxes$0 $500,000 Net Income$16,137,990 $95,968,615 Adapted from OSHPD Hospital Annual Financial Data Pivot Profiles, 2013