Why FMC is Proud to be a Nonprofit Hospital

Nonprofit hospitals are charitable. All nonprofit hospitals provide needed medical care regardless of patients' ability to pay. In 2000, Flagstaff Medical Center provided almost $3 million ($2,975,153) in charitable care in nearly 1,000 cases.

FMC's charitable contributions exceed potential tax payment. To qualify for nonprofit status (which excludes the hospital from paying property taxes), the hospital must provide charity care in excess of the taxes it would pay without the nonprofit status. FMC would pay an estimated $1.5 million in annual property taxes if it was not tax-exempt, in contrast to the $3 million in charity care it provides each year.

For-profit hospitals are not required to provide any charity care. If FMC were a for-profit hospital and was taxed, it is likely it could no longer provide charity care, which would place the burden of caring for those individuals on the community.

FMC is a leader in charitable care. In relation to other Arizona hospitals, FMC greatly exceeds other hospitals in Arizona in the amount of charity care provided to the community. FMC's charity care (as a percent of net revenues) is 124 percent of the Arizona state average. (Source: Arizona Hospital and Healthcare Association.)

Nonprofit hospitals relieve government of a burden. In Arizona, there are tax-supported county hospitals in Maricopa and Pima counties only.

FMC assumes the responsibility of providing specialized medical care to patients unable to pay from not only Flagstaff, but from throughout Coconino County and Northern Arizona. By offering high quality service in a variety of specialties, FMC allows Flagstaff and Northern Arizona residents to stay close to home for their medical care. Additionally, this depth of service has meant other hospitals in Northern Arizona can rely on FMC to provide specialty care, saving the communities and their hospitals great expense.

Audited financial statements document that in 2000, FMC provided more than $68 million of uncompensated care. This includes write-offs for uninsured and underinsured patients, and for differences in actual charges and what Medicare and Medicaid (AHCCCS) will reimburse.

Nonprofit hospitals exist for the community good. Any funds raised by a nonprofit hospital beyond those needed for day-to-day operations are invested back into the facility in the form of better services or charitable care. There are no stockholders or investors who benefit --- only the community. Flagstaff Medical Center currently is in the middle of an $81 million Master Site Plan to expand facilities and add services including high tech medical equipment for the benefit of the community. Some of the services added in the past few years or planned for the near
future include:

  • Cardiac Catheterization Laboratory.

  • Expanded Emergency department that operates as a Level II Trauma Center.

  • Ambulatory Surgi-Center that provides more availability and lower cost for patients needing outpatient surgical services.

  • Outpatient Services Center that consolidated patient registration, lab and radiology services in one convenient area.

  • Women and Infants' Center that greatly expands obstetrical and nursery services. FMC's Special Care Nursery is designated a Level II Enhanced Nursery allowing it to care for babies born up to 12 weeks early and babies requiring ventilation. The closest nursery offering these capabilities is in Phoenix.

  • The Taylor House, which serves the families of FMC's out-of-town patients by providing a low- or no-cost place to stay near their loved ones during their hospitalization.
    The McGee Education Center, a state-of-the-art medical education facility.

  • Greater capacity for inpatient care, including more critical care and medical/surgical beds. FMC currently turns away nearly 30 patients per month because of capacity issues.

  • Pediatric Intensive Care Unit, the first of its kind in Northern Arizona.

FMC charges comparable to state. According to the most recent Arizona Hospital and Healthcare Association data, FMC's net charges per patient day are at or below the state-wide average.

FMC positively impacts community. Together, FMC and its parent company, Northern Arizona Healthcare which is based in Flagstaff, are one of the largest employers in the Flagstaff area. The Greater Flagstaff Economic Council estimates that for every full-time employee at FMC/NAH, 2.03 other jobs are created in the Flagstaff community for 3,045 jobs. When this figure is added to the actual number of FMC/NAH employees, FMC/NAH account for nearly 5,000 jobs in the Flagstaff area.

FMC is a community partner. As a nonprofit hospital, FMC is committed to investing in its community through its Foundation. During the past five years, FMC has given more than $1 million to projects such as the school-based clinics, school-based dental clinics, Flagstaff Community Foundation, Community Caregivers, VanGo, Northland Family Help Center, diabetes education and more. This year, the hospital provided $25,000 as a match to employee contributions to the United Way of Northern Arizona.

Additionally, FMC supports and encourages its employees to be active in the community.
During fiscal year 2000, employees donated more than 24,000 hours performing community service.

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Northern Arizona Healthcare - 1200 N. Beaver St., Flagstaff, Ariz. 86001 - 928 779-3366
Flagstaff Medical Center - 1200 N. Beaver St., Flagstaff, Ariz. 86001 - 928 779-3366
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