ArticlesCapacity Considerations and Community Benefit Expenditures of Nonprofit HospitalsBryce, Herrington J.Author Information Herrington J. Bryce, Ph.D., is the Life of Virginia Professor of Business Administration, College of William and Mary, Williamsburg, Virginia. I thank Ms. Chen Chi Tsao for running countless regressions and Ms. Shaku Desai for assistance with the data set. My thanks to Ms. Breana Brown and Ms. Shaunte Newby for the Lexis-Nexis search of state laws, proposals and rules and to the many state attorney's offices in Indiana, Washington, Massachusetts, Texas, Oregon, and California. This manuscript has been made much better by the critical comments of the referees and editors in the many revisions of this article. I am solely responsible for all errors. Health Care Management Review: Summer 2001 - Volume 26 - Issue 3 - p 24-39 Buy Abstract The United States Internal Revenue Service (IRS) and some states require nonprofit hospitals to demonstrate that they provide a substantial community benefit in order to get or maintain their tax-exempt status. This places every nonprofit hospital at risk. This article is about certain common factors that impact the management of all nonprofit hospitals and their ability to comply with such laws. Copyright © 2001 by Aspen Publishers, Inc.