The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Sunday, July 9, 1995                   TAG: 9507060013
SECTION: COMMENTARY               PAGE: J4   EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Short :   26 lines

NONPROFIT STATUS ABUSE

Three cheers for ``Nonprofit nonsense'' (editorial, June 26), though you failed to mention hospital corporations that have successfully exploited a nonprofit status to become big business. The resulting power shift of decision-making from doctors and patients to ``managed care'' administrators has resulted in billions of dollars of profits for savvy HMOs.

The amount of revenues that you attributed to the AARP are a drop in the bucket compared to the amounts that nonprofit hospitals and HMOs spend on advertising alone. Perhaps our seniors have the most to lose as their medical choices are made for them.

You are right: The nonprofit tax code allows for abuse and is an abuse. I can't blame our seniors for being wise enough to play the only game in town.

MARGIE RASHTI

Norfolk, June 26, 1995 by CNB