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this post was submitted on 07 May 2024
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Profit can always be distorted based on how much you're paying your employees.
I ran the books for a law firm for I don't know how many years. They had a profit larger than $500 one year, and that was by choice. We put all the profits in salaries every year. For smaller businesses it's pretty easy. Larger companies it's harder but doable, you just have to be right on top of your bookkeeping.
There's no issue with this because it gets taxed either way.. all of the employees pay tax on the additional income probably at about the same rate as the company would have.
For a hospital on the other hand, they're just increasing costs of Healthcare.