Who profits from nonprofits?" asked Regina Herzlinger and William
Krasker in an article in the Harvard Business Review (Herzlinger and
Krasker 1987). Their study questioned whether not-for-profit hospitals
achieve the social goals for which they are intended and for which they
are subsidized by society (i.e., through their privileged tax-exempt
status). Herzlinger and Krasker's findings suggested that not-for-profit
health care organizations do not return more benefit to society than do
for-profit hospitals and should not, therefore, be subsidized by society.