CALIFORNIA HOSPITALS

The state of California is looking into allegations that several nonprofit hospital are achieving too much of a surplus, including those managed by the large Kaiser Foundation and Sutter Health organizations, reports the Sacramento Business Journal. Fifteen of the 200 hospitals reviewed by the state legislature reported that they earned at least 10 percent more than their operating costs in 2004, causing concern over whether they should continue to receive the state tax benefits that nonprofit health-care institutions currently enjoy. Audits are expected by the end of the year.