Bill Sugg Explains Key Differences of Nonprofit and For-Profit Hospitals

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Bill Sugg Nonprofit and For Profit Hospitals Bill Sugg Nonprofit and For Profit Hospitals

Bill Sugg finds hospital organizational structures to vary. 


Bill Sugg – Nonprofit and For-Profit Hospitals

The first difference starts with tax status, which impacts not only the hospital but also the community it serves. For-profit hospitals must pay taxes to municipal and state governments, which in turn support schools, roads, and other public services. 

Bill Sugg explains that this also influences the hospital culture because for-profits generally need to be more cost-efficient. Paying high sales tax and property tax can be a burden on businesses.  Leaders must train employees to be conscious of costs and perform operational assessments regularly. By taking a closer look at operational costs, leaders can often find overlooked ways of saving money. 

Operational Discipline

For-profit hospitals are truly set apart by operational discipline, as leaders and executives work to achieve positive financial performance. Bill Sugg believes this is accomplished by enforcing accountability and performance efficiency throughout the workspace. Employees held accountable for their actions work harder to reach goals and deadlines; knowing a follow up will be conducted in the future.

Another useful tool commonly used in for-profit hospitals is detailed reporting. Bill Sugg notes that dashboard reports focused on finance and productivity metrics can help employees stay on track and realize how their contributions affect the company as a whole. 


The healthcare industry is slowly shifting its focus from the volume of patients to value of care. The appetite for success is still there, but leaders realize that by providing top-notch care, the volume of patients will increase as their reputation does. Bill Sugg explains that when it comes to negotiating care contracts, for-profit hospitals will look for leverage while nonprofits look for partnerships. This makes the negotiation aspect a much more aggressive process for for-profits. 

About Bill Sugg

William T. Sugg, also known as Bill Sugg, of Valley County Health Systems, has worked through almost every major crisis possible in a hospital setting, including deadly tornadoes, floods, fires, scandals and rebuilding the 17th most beautiful hospital in the United States. His leadership style is approachable, transparent, and people-centered. William T. Sugg believes in a strong teamwork culture that promotes respect, trust, commitment, and dedication to goals and values.