Nonprofit Health Care

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Nonprofit Versus For-Profit Healthcare 7

Nonprofit Versus For-Profit Hospital Healthcare
Jason Whatley
HSM 541: Health services System
Dr. Eric Oestmann
May 22, 2016

Abstract
A comparative analysis was conducted between for-profit hospitals and nonprofit hospital healthcare systems. This will discuss the characteristics of each as well as factors that are affecting the operations of both systems. In addition, it will converse potential areas of improvement and some of the challenges linked with each in relation to finance and operations. The objective is to discuss options to improve the financial and operational performance of nonprofit organizations and criticisms leveled at for-profit healthcare organizations.

Introduction …show more content…
For example, they are criticized for being very selective in locations that are sustainable and have well-insured patients. This tends to be more for urban areas rather than rural areas (Dahlgren, 2014). In addition, the avoid treating the uninsured and take the minimal amount of the Medicare and Medicare programs due to the potential of profit loss (Rotarius, 2005). Underlying this concept of profit making is the assumption that all general hospitals, regardless of ownership, are alike in the types of medical services they provide. They merely differ in their patient mix, since they receive no tax benefits. They mainly receive financing from capital and investment dollars, to invest in improvements, hiring staff, and returning the profits to the …show more content…
There is a stigma that the quality in a for-profit institution was more prone to mortality rates than nonprofit. At the same time, nonprofit hospitals sometimes struggle with finding the funds necessary to upgrade technology or maintain existing resources, while for-profits have a greater capital to invest in state-of-the-art equipment (Rotarius, 2005). Eventually, the for-profit hospitals will provide better care than the nonprofit. However, each hospital has different standards, so the trends that are thought to be true may actually be false. There is a balance to the quality of care and it relates to the ease of the access and the cost factors. What matters is service that is provided to the guest, to ensure their well-being (Colombo,

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