KRMC is considered a non-profit corporation by the IRS and the Arizona Department of Revenue. This is because a group of local leaders came together to formulate a non-profit corporate entity that would assure local hospital control. There are NO investors who take funds or other resources for their private benefit. All excess funds are kept for the benefit and development of the community’s health services as determined by our local board.

The IRS and the Arizona Department of Revenue consider such community hospitals and health care organizations “tax-exempt”. Therefore, KRMC does not have to pay income tax on excess funds and we do not have to pay sales tax on most supplies and equipment purchases. Most Arizona counties (including Mohave) also exempt community hospitals from some property taxes. This allows KRMC to keep operating costs lower and provide more charity care and other health care services to the community.

KRMC has long committed not to solicit investors and borrow excessively. This strategy made the hospital’s early years difficult, but has paid significant dividends of late. Our hospital average inpatient charges have remained significantly below the Arizona average for the same types of patients. Additionally, excess funds accumulated since KRMC was organized, have been utilized to pay campus expansion/improvements, state-of-the-industry technology and competitive salaries for employees.