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Difference between nonprofit and for profit hospitals
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By now most all Americans have heard of the terms non-profit, for-profit and government hospitals when referring to a healthcare organization. However, not many of us understand the difference between the three nor do we know if the hospital we are using is a nonprofit, for-profit or government-owned entity. Lines are blurred when it comes to the services they provide, if they are different are alike, and if profitability affects the level of care or specialization. Moreover, complexities arise when thinking in terms of which design is best. Questions such as which entity is more profitable, which provides the best services and which suggests the best sustainability over time, are often at the forefront of our minds when receiving medical care. In addition legalities of each are different thus they may appear to be the same in terms of what they do but they operate under different set of rules. To date there are a total of 5,267 registered hospitals in the United States, these are compiled of non-profit, for-profit, state and local government hospitals, federal government hospitals, nonfederal psychiatric hospitals, nonfederal long term care hospitals and hospitals in Institutions such as prison hospitals, college infirmaries and such. Non-profit hospitals account for 2,870 hospitals, for-profits account for 1,053 hospitals, and state, local and …show more content…
Since nonprofit hospitals rely heavily on state programs, donors, financial support from clients, and government resources, they are always at risk of having to cut back on services provided they do not receive adequate funds to support their functions. Another major disadvantage of is social pressure. Non-profits healthcare organizations often face criticisms for some of the unconventional methods they use as opposed to evidence base treatment and the efficacy thereof. According to author R. Mayhew a writer for the Chron
The current health care landscape has been characterized by large scale consolidation and vertical integration of payers and providers. This has led to a handful of dominate players with substantial influence, and an increasing overlap in responsibilities between payers and providers. Although payers and providers have traditionally been on opposing sides, battling each other about quality of care versus cost-effective care, they are shifting to working together to achieve better value.
The health care organization with which I am familiar and involved is Kaiser Permanente where I work as an Emergency Room Registered Nurse and later promoted to management. Kaiser Permanente was founded in 1945, is the nation’s largest not-for-profit health plan, serving 9.1 million members, with headquarters in Oakland, California. At Kaiser Permanente, physicians are responsible for medical decisions, continuously developing and refining medical practices to ensure that care is delivered in the most effective manner possible. Kaiser Permanente combines a nonprofit insurance plan with its own hospitals and clinics, is the kind of holistic health system that President Obama’s health care law encourages. It still operates in a half-dozen states from Maryland to Hawaii and is looking to expand...
The nation has approximately 1 million nonprofit entities of various sorts and hospitals have long been a traditional service provider in the nonprofit sector (Williams & Torrens, page 185). Nonprofit entities are generally exempt from most taxes at the federal, state, and local levels, including income and property taxes (Williams & Torrens, page 185). These facilities are governed by a community-based board that has ultimate authority for running these entities. Sponsorship for a nonprofit can come from various organizations, unlike other hospitals with traditional religious sponsorship (Williams & Torrens, page 185). A small percentage of the nation’s hospitals are operated by for-profit businesses (Williams & Torrens, page 186).
They grew overcrowded quickly and offered little to no medical care. The nurses were not trained professional, but rather women who couldn’t find other work or former inmates. “Once established and staffed by trained physicians and nurses, public and not-for-profit hospitals became key components in a rapidly expanding medical culture” ("America 's Essential Hospitals, 2013"). After the 1920 not-for-profit hospitals began reduced catering to the poor and aimed for the upper middle class. While public hospitals sill tried to find ways to treat the poor, not-for-profit created prestigious institutions to attract the upper class("America 's Essential
A recent phenomenon in the health services is the burgeoning of outpatient healthcare centers. Particularly vigorous growth has been observed in centers that perform diagnostic tests and simple surgeries and procedures like colonoscopies. At the current state, outpatient care centers outnumber hospitals in Pennsylvania. Furthermore, these centers now perform one of every four surgical and diagnostic procedures in the state (Levy 2006). However, the trend applies nationwide, and other states could easily follow suit. Many critics have commented on the negative and positive aspects of this trend. What remains to be determined are the long term effects (on health and the economy) of this paradigm shift, in terms of the wellness of the community as well as economically. Proponents of the movement have pointed to the lower overhead for these clinics trickling down to lower costs for patients. However, critics skeptically question whether the real benefits are for the patients or simply as a mechanism to stuff physicians' wallets. When considered as firms in the marketplace, it is evident that these two groups, both servicing the health needs of the community, have vastly different balance sheets and income statements. This transfers over to a difference in operational functionality, profitability, and cost structure. Furthermore, the disparity of financial motivations that is visible in the varying profit margins is of concern to the community. All of these are important considerations to be made when considering the economic implications of this new phenomenon.
Davidson, Stephen M. Still Broken: Understanding the U.S. Health Care System. Stanford, CA: Stanford Business, 2010. Print.
The U.S. healthcare system is very complex in structure hence it can be appraised with diverse perspectives. From one viewpoint it is described as the most unparalleled health care system in the world, what with the cutting-edge medical technology, the high quality human resources, and the constantly-modernized facilities that are symbolic of the system. This is in addition to the proliferation of innovations aimed at increasing life expectancy and enhancing the quality of life as well as diagnostic and treatment options. At the other extreme are the fair criticisms of the system as being fragmented, inefficient and costly. What are the problems with the U.S. healthcare system? These are the questions this opinion paper tries to propound.
The United States health care system is one of the most expensive systems in the world yet it is known as being unorganized and chaotic in comparison to other countries (Barton, 2010). This factor is attributed to numerous characteristics that define what the U.S. system is comprised of. Two of the major indications are imperfect market conditions and the demand for new technology (Barton, 2010). The health care system has been described as a free market in
Health care system is a prominent subject all over the world. Every country wants to provide the best health facilities and services to their people. Even than there are so many lapse in the health care field? As regard to U.S there are also so many short comings in the health care organizations. I have gone through and studied the background of the health care system being run by clinics, primary health care centers, and hospitals etc. People has to pay very high charges on every visit to the doctor or surgeon for medical treatments, follow-up and as indoor patients. Theses health care organizations demand plenty money and other hidden expenditures from the patients which is some time beyond the reach of the patients.
However, according to Jenna Flannigan, write at Healthline.com, America’s current for-profit system allows for competition between medical and pharmaceutical companies which drives prices up astronomically. “In countries where health insurance is government-run or nonprofit-run, there is no profit factor to drive up prices…For example, a typical bypass surgery in the Netherlands costs about $15,000 while in the United States it costs about $75,000” (Flannigan). This figure illustrates how the US’s needless competition between private, for-profit organizations make medical care unnecessarily unattainable to those who aren’t very affluent or do not have comprehensive medical care. These bloated prices do not even contribute to better care a majority of the time, as pointed out by political consultant Karin J. Robinson. “Here in Britain, for instance, we spend about 8% of the country's annual GDP on health care, compared to 15% in the US, and yet the overall health of the population is similar, with perhaps even a slight advantage for the UK” (Robinson). America’s current system is far more expensive, but for what reason? A healthcare system should be driven a will to help those in need, not for the personal gain of companies that are rife with greed. America needs to follow the path of other first-world nations and take a different approach to
A country’s health care system refers to all the institutions, programs, personnel, procedures, and the resources that are used to meet the health needs of its population. Health care systems vary from one country to another, depending on government policies and the health needs of the population. Besides, health care programs are flexible in the sense that they are tailored to meet health needs as they arise. Among the stakeholders in the formulation of a country’s health care system are governments, religious groups, non-governmental organizations, charity organizations, trade/labor unions, and interested individuals (Duckett, 2008). These entities formulate, implement, evaluate, and reform health services according to the needs of the sections of the population they target.
...staff would not be required to put in the overtime to compensate for the lack of workers. Patients would no longer have to suffer the neglect of the staff because he or she was too busy. Making sure the patient gets the best quality care reduces the time spent for recovery. Reducing the time spent for recovery increases the organization’s finances. Providing a safe facility also reduces the expenses on the private hospital’s budget. Ensuring a patient is safe can reduce potential use of ongoing treatment and services. Hiring the appropriate nursing staff needed can save the organization money. Instead of cutting back on staff, more staff needs to be hired to fulfil the needs of the patient. In the economy today, private hospitals need to focus on the overall long term effects of each action opposed to quick reactions resulting in financial strain for the facility.
The influence of safety net hospitals is seen largely throughout our local community and state. Attending a Title I school (a school where forty percent or more of the students come from low-income families) myself, I am very familiar with people who live under the poverty line and the struggles ...
A hospital is an institution that provides medical services for a community. Hospitals can be looked at from many different aspects. The main ones are length of stay, kinds of service, and the type of ownership. Short-term hospitals make up most hospitals. The patients in these hospitals stay only less than a month. The community of a hospital make up how much recognition they might receive. Community and nonprofit hospitals always spend more money for patient care than they receive in fees.
In nonprofit organizations, the monetary support provided is not always directly related to the service provided, as patrons are not directly charged for services. So the success is measured by the quality of economically costed services.