Difference Between a For-Profit and a Non-Profit Hospital

1059 Words Feb 1st, 2018 4 Pages
The established of the two differentiates institutions of health has also had controversial twists concerning their societal role. For-profit hospitals are said to be after money more than service delivery, while non -profit are not. Both hospitals use their market power in a similar way that it is sometimes hard to differentiate their behavioral characteristics. From research, it has shown that knowing the differences is relevant. In 1986 for-profit hospitals had a higher market power but non profit hospitals increased after 1986. In nonprofit hospitals, there is a higher frequency of treatment of patients who are uninsured so the care given is mostly uncompensated. This is also similar in forprofit hospitals although with a bit lower frequency. Nonprofit hospitals are associated with government institutions, which provide quality care than demanded. They are almost similar in providing quality healthcare although there is a slight higher quality in non-profit hospital. Non profit hospitals are required to report on the benefits provided to the community (to the tax department) but, for for-profit, it is not a requisite. If Non profit hospitals seek permission they will be exempted from paying taxes. The organizationgrants the permission if the hospital is operating for non profit purposes. Non…
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