Episode 022: Are Hospitals Really Non-Profits? A Discussion with Dr. Craig Wax

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Episode 022

The Paradocs Podcast

Episode 022: Are Hospitals Really Non-Profits? A Discussion with Dr. Craig Wax

Episode 022: Are Hospitals Really Non-Profits? A Discussion with Dr. Craig Wax

Did you know that most hospitals (or hospital systems) enjoy a non-profit tax status? Despite revenues in the billions of dollars these entities operate within your city or community with a tax exempt status including all the medical offices, laboratories,  imaging centers, and billing offices that they build and purchase. Does this give them an unfair competitive advantage over for profit imaging centers, laboratories, or physician private practices?

My guest, Dr. Craig Wax, is a family physician who writes extensively about health care and says that allowing these massive hospital systems to have tax exempt status is an unfair advantage they have at the cost of private practice physicians and other health care centers. He contends that not only does this property tax exempt status provide a huge economic advantage but it also places a larger tax burden on the citizens in those cities to provide all the services that hospitals require. He provides the example of a city now required to purchase a new $2 million fire truck designed to put out fires in high rises because of the construction of a new hospital that won't be paying any property taxes.

As if speaking out about hospitals wasn't enough, Dr. Wax recently joined a class action lawsuit to take on his national medical society, the AOA (American Osteopathic Association) to uncouple board certification from being a member of the private organization. Although the case was not brought to trial it was settled out of court and he and the other plaintiffs were successful in ending the forced membership (~$800 annually) to the AOA just in order for DOs in the United States to practice medicine. This victory has the potential to blaze a path for allopathic physicians (MDs) to do the same for their certification process. This is in fact happening through the work of the Practicing Physicians of America who are preparing to launch a class action suit which we discussed in episode 009 and 020.

Dr. Craig Wax is a family physician, writer, and radio host of the Your Health Matters radio show. He has written extensively on health care policy and history. He successfully sued the AOA freeing osteopathic physicians from joining the AOA in order to be credentialed.

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show notes

The American Hospital: from Volunteer Charity to Tax Exempt Patronage Pit: The article by Dr. Wax expressing his not-so-subtle opinion of what has happened with hospitals and how we got here.

Your Health Matters: Dr. Wax's radio program can be found on Rowan Radio or Thursday evenings from 5:30-6 at WGLS 89.7 FM in the Delaware Valley radio market.

Dr. Craig Wax: Dr. Wax's twitter handle where you can follow his musings and writings.

Medical Economics Blog: Search for Craig Wax and find his great writing.

Dr. Wax on Instagram

Health is Number One: Dr. Craig Wax's Website

Episode 005: Marion Mass on Where is All the Medicine

Episode 020: Megan Edison on State of MOC

Episode 009: Dr. Fisher discussing his upcoming lawsuit and why it is needed to end MOC

Memorial for Andy Larson: This is the donation link to honor Andy's death with the Grand Rapids Choir of Men and Boys where he blossomed and served as a head chorister.

YouTube for Paradocs: Here you can watch the video of my late son singing his solo on the Paradocs YouTube page.

Patreon - Become a show supporter today and visit my Patreon page for extra bonuses. Every dollar raised goes towards the production and promotion of the show.

Listen to The Paradocs on RadioPublic