Non Profit Organizations In The Health Care Sector

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Health care sector generally has three types of hospitals like not for profit, for profit and hospitals run by governments. Not for profit organizations typically are the largest groups and are those organizations which are ran for public benefits and does not look for any profit. They charge very minimum and most are free of charge. "They are service oriented and try to give best treatment for those who cannot afford it. These hospitals are owned by nonprofit corporations that specialize in managing hospitals and health systems" (Williams & Torrens, 2008). For profit organizations are those which are profit oriented and cost for the treatment they provide. They commercialize everything and most of the people cannot afford them. They are for …show more content…

Non-profit hospitals viewed as charities by the IRS, they comply with guidelines governing non-profits and providing certain benefits to the community. Non-profit hospitals don't pay federal income and local property tax. They don't have different source of investors and they don't need to give answer to shareholders. Non-profit hospitals are typically to accept everyone who comes in the doors, regardless their condition to pay. For profit hospitals, they pay property and income tax. Profit hospitals have avenues for rising capitals. By that they have upgrade facilities and latest technology equipment. But a critic for profit hospitals includes labor unions, consumer group and some legislation.A government funded hospital is a hospital which is owned by a government and receives government funding. This type of hospital provides maximum medical care for free of charge, the cost is covered by government funds. Overall I believe there are three separate and different models to provide the quality of care specifically designed for each person personal need. I work for a hospital that was a non profit hospital that just recently went public to a "for-profit" status. The purpose behind it was to be able to obtain grants and gain the ability to accept funding for research. Providing the best quality of care and being able to have funding to research cures for specific diseases and illnesses in …show more content…

With the help of mergers and acquisitions, these healthcare organizations can improve the availability of quality healthcare service in many locations. In fact these acquisitions have also improved the quality in the acquired organizations. Disadvantages of for-profit hospitals, the for-profit hospitals are responsible for their stockholders thus they aim to perform those activities which help in improving the wealth if their stockholders. "Traditionally, proprietary hospitals have been the province of physicians, whereas nonprofit institutions have been dominated by community leaders” (Carper & Litschert, 1983). These organizations are manly profit governed organizations and thus they will provide only those services which are profitable for them. Advantages of non-profit hospitals, these hospitals can help the gap between the healthcare services by creating healthcare facilities. These mainly focus on those services which are neglected by the for-profit organization and their operating cost is relatively lower due to various incentives being paid by the government. "One characteristic of nonprofit hospitals is that usually control formally resides in a board of

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