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akmalhot t1_jdzhqpo wrote

Reply to comment by [deleted] in Gainey is set to unveil plans to challenge the tax-exempt status of more than a dozen properties in the city, including UPMC and a Propel School on the North Side by sugarandspice85

UPMC shouldn't have not for profit status. Medical systems in PA use this status to drive wild profits, which they just reinvest in growing the business and paying outsized salaries to c suite .. they can't retain 10% of the profit so they buy up buildings, build new treatment centers ... The status probably forces their reinvestment in growth

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tesla3by3 t1_jdzt1in wrote

UPMC shouldn't have nonprofit status, agreed.

But there's nothing preventing UPMC from retaining 10% of their profit. In fact, best practice for nonprofits is to have enough can available to meet a drop in income; usually 3-6 months of expenses. At the end of 2021 UPMC had enough cash on hand to cover 148 days of expenses. $10.7 Billion in total cash and investments.

Their stated reason for expansion is "expanding access to healthcare", while at the same time doing things like closing Braddock and expanding in Monroeville.

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akmalhot t1_je0baak wrote

the expanding access schtick is used to justify everything and anything.

In dentistry corporate DSO's use it to justify them owning and pulling money out of the entire system and allowing them to outright own offices. To expand access to care - yet all they do is open offices in highly competitive markets and close them in rural areas.

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