The solution to addressing the issue of for profit healthcare organization to turn a profit from its paying customers while meeting its ethical obligation to provide care to the not able to pay customers can be done by forming a new type-of corporation called the benefit corporation. To be set up as a benefit corporation a healthcare organization must be set up with a dual purpose. 1) Create a general public benefit by creating value for its stakeholders- Such as the local community, local and global governments, employees, suppliers, and customers 2) Crate a profit benefit fro the organization 's stakeholders. This particular type of corporation will shield the organization from lawsuits by shareholders who could argue that the corporation
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3) It may be possible that the stakeholders might have a negative return on investments 4) There might be a difficulty in finding Board members amongst the community due to liability or lawsuit exposure against them personally (Gomez, E. …show more content…
Before a for-profit organization decides to locate itself in the community it attempts to locate itself amongst a large insured population. While the nonprofit organization seems to place itself anywhere in a community. This could be partially due to the availability of funds to either lease or own the facility they are going to do business at, since they rely on sponsors, grants, and government funding. As, I read this article, it demonstrates that for-profit organization 's go after the higher paying procedures, such as offering open heart surgery. Reimbursement of open heart surgery is quite financially beneficial, yet in the study that was performed it shows that nonprofit organization 's cover many unprofitable services, such as Psychiatric care. A for-profit organization would send the patient out for continued Psychiatric care once the patient is stabilized rather than running up a bill that has the possibility of not getting paid by the low income uninsured patient (Horowitz, J.,
3) It may be possible that the stakeholders might have a negative return on investments 4) There might be a difficulty in finding Board members amongst the community due to liability or lawsuit exposure against them personally (Gomez, E. …show more content…
Before a for-profit organization decides to locate itself in the community it attempts to locate itself amongst a large insured population. While the nonprofit organization seems to place itself anywhere in a community. This could be partially due to the availability of funds to either lease or own the facility they are going to do business at, since they rely on sponsors, grants, and government funding. As, I read this article, it demonstrates that for-profit organization 's go after the higher paying procedures, such as offering open heart surgery. Reimbursement of open heart surgery is quite financially beneficial, yet in the study that was performed it shows that nonprofit organization 's cover many unprofitable services, such as Psychiatric care. A for-profit organization would send the patient out for continued Psychiatric care once the patient is stabilized rather than running up a bill that has the possibility of not getting paid by the low income uninsured patient (Horowitz, J.,