Types of HospitalsHistorically, two types of nonprofit community hospitals were established in the United States: those founded and run by religious organizations and those run through a secular community-based initiative. Religious hospitals were wholly funded and managed through a church or affiliated religious organization. Secular nonprofit community medical centers received an allocation of tax money to supplement funds.
Both religious organizations and local units of government that underwrote the costs of operating nonprofit community hospitals have faced shrinking resources over the past generation. So nonprofit community hospitals have seen significant reductions in revenue from their historic funding sources. Churches and other religious organizations drastically reduced their direct financial support and operation of community hospitals. The net effect means these hospitals must obtain additional funding through grants or to shut their doors.