Health-Care Nonprofits Are ‘Big Business’

Health-care services account for half of the $3 billion in revenue annually generated by Orange County’s nonprofit sector, according to a recent study by Cal State Fullerton economists. Unlike many struggling nonprofits that rely on grants for most of their funding, local hospitals and other health-care enterprises receive much of their revenue through the huge levels of services they perform. Consequently, nonprofit health-care organizations, like their for-profit peers, amount to “big business,” says Robert A. Kleinhenz, an economist at the university.

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Barbara Marsh covers health care for The Times. She can be reached at (714) 966-7762 and at barbara.marsh@latimes.com