Non profit hospitals typically use their "profit" for program development. Buildings, operating rooms, durable medical equipment like CT scanners and such. They also pay for educational and outreach programs for diabetes, breast cancer, etc.
Some "not for profits" also have OUTRAGEOUS executive compensation. Local Sutter Health has 9 executives making more that $1 million/year. The John Muir CEO made $7.45 million in 2008.
