A fine is not fine

Regular readers know of the patient quality and safety troubles faced by Parkland Memorial Hospital, as made broadly public last summer.  A new chapter has now unfolded. As reported by Patient Safety and Quality Healthcare:

Parkland Health & Hospital System has reached a settlement agreement with the Department of State Health Services (DSHS) that resolves and discharges all potential litigation and enforcement actions for compliance issues prior to May 31, 2012.  Under the agreement with DSHS, Parkland will be assessed $1 million for violations that occurred prior to June 1, 2012. $750,000 will be payable within 30 days of the execution of the agreement. $250,000 will be held in abeyance subject to Parkland’s compliance with the terms of the agreement.

I understand the need for a closely supervised quality and safety improvement program, but I cannot understand the purpose of a fine, especially when the institution being fined is a non-profit hospital.Why would you take resources away from a hospital when what is needed is for it to invest in an extensive and intensive quality and safety program?

I could even see requiring Parkland to spend this amount on quality and safety programs, but I don't see the point of hurting them financially.

Your thoughts?