Profit vs Non Profit Hospitals Essay

1009 Words Jun 26th, 2013 5 Pages
Profit vs. Non Profit Healthcare Organizations

Prepared By: Milton Flores

Table of Contents

I. Introduction……………………………………………………………………………………………………………………………………3

II. Definition of Non Profit Health Care Organization………………………………………………………………………….4

III. Definition of Profit Health Care Organization…………………………………………………………………………………4

IV. Issues facing Non Profit and Profit Health Care Organizations……………………………………………………….5

V. Options to improve operations……………………………………………………………………………………………………….6

I. Introduction
The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for
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Another interesting element related to nonprofit and for profit health care organizations is that many of the nonprofit organizations, such as hospitals, that have switched to for-profit have done so because they were not able to operate in their current status because of financial issues. The organizations that have switched to for-profit have improved their financial situation and have reduced Medicare costs with higher revenues.

Nonprofit health care providers, such as health care plans, hospitals, and nursing homes were initially established for charitable purposes. The high cost of health care that we are currently experiencing in the United States was not as much of an issue when most of these organizations and health care plans were established. The rise in health care since he 1980's has been the reason that many have switched to for-profit. If they did not switch, many would have not been able to still function and provide services. It is vital to realize that nonprofit health care providers have a mission of serving people and providing services without regard for a patient's ability to pay. The financial part is that the way nonprofit is able to do this is to charge more to patients who are able to pay in order to offset cost. In contrast, for-profit views health care as a business. But, it is because of this very factor that profits are recognized which in turn helps to keep cost down for all not for a select group only.

V. Options to

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