What is it about the health care debate that sparks so much passion in the United States? Study after study over the past few decades provide little as to which system is better. Depending on who you ask, some will say that For-Profit hospitals are better because they tend to approach ownership from a business point of view, while non-profit point offer more money losing services to the advancement community as the emphasis (Rotarius, Trujillo, Liberman, & Ramirez, 2005). Of course, the majority of these studies are often isolated from other variables measuring a single metric in a certain region of the country. For instance, the delivery of uncompensated care. Though they share many business similarities, the greatest distinction between nonprofit …show more content…
One key difference is that any profit earned goes back towards community activities, services and programs (McPherson, 2013). Mary Greeley Medical Center in Ames, Iowa used the following 8 principles to exponentially increase profit margins at the non-profit facility from 1.5% in 2009 to 8% in 2012 (Herman, 2012). Monitor financial metrics closely. Review key metrics such as covenants, debt to capitalization, capital expenditure ratios, among others consistently (Herman, 2012). Embrace quality, safety and service. Direct medical staff to monitor all quality core measures and tracks patient falls, drug errors and other "never events” (Herman, 2012). Improve documentation. Errors in the process was costing money, a partnership with a clinical documentation firm helped to increase revenue by $3 million annually (Herman, …show more content…
Most understand the cost of medical services is expensive, so why not combine the best of both types of ownership. Non-profits heart for the community with for-profit’s business acumen. While the care in both may mirror each other, the culture driving decisions is different. The big question is what to do with the profits? Invest back into much needed community programs and outreach? On the other hand, payout as dividends to shareholders? Anecdotally speaking, a large percentage of citizens, and health care providers would more than likely want to spend profits on programs, research, learning and
In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons
Millions of dollars are spent on healthcare every year in USA but the health of the beneficiaries has not increased accordingly. Just providing healthcare is not enough; quality healthcare with long term benefits should be the aim of the healthcare providers. I have studied and worked in certain multi-specialty hospitals and government facilities in my home town. I have seen corruption and frauds happening at various levels and hence wanted to study about how such non profit and
In He and Mellor’s article, cuts in the Medicare payments would increase the amount of care provided to the uninsured by for-profit hospitals (He and Mellor, 2016). In the article, “How Much Do Hospitals Cost Shift?” Frakt explains that nonprofit and for-profit hospitals are in competition with each other. Nonprofit hospitals encourage for-profit hospitals to enhance trustworthiness and quality. For-profit hospitals persuade nonprofit hospitals to cut costs and become more efficient (Frakt,
The debate over non-profit versus for-profit healthcare organization has been ongoing, does one provide better care than the other? Do the operations of for profit perform better than the non-profit organizations? Are the criticisms about for-profit organization validated and is there proof? The goal is to examine those questions as well as offer options to improve the financial and operational performance of non-profit and for-profit organizations criticisms.
For profit providers look at health care as a business, with a financial bottom line producing profits that can be distributed to shareholders. Supporters of for-profit health care say that increased competition can produce a more efficient, effective, less expensive health care system. Since the 1980s, for-profit health care facilities have proliferated, including national hospital chains, health plans,
"To continuously improve health care for the public, in collaboration with other stakeholders, by evaluating health care organizations and inspiring them to excel in providing safe and effective care of the highest quality and value” (Jointcommission.org, 2015). These requirements are regimented in the National Patient Safety Goals and are enforced via surveys and internal inspections to ensure that healthcare institutions abide by the safety mechanisms put in place to facilitate the optimal patient outcomes and environments.
The purpose of this paper is to identify a quality safety issue. I will summarize the impact that this issue has on health care delivery. In addition, I will identify quality improvement strategies. Finally, I will share a plan to effectively implement this quality improvement strategy.
Apart from the Affordable Care Act, there has been increased government and court involvement in the determination of how healthcare issues are run, like the recent denial of the nonprofit tax exemption status to some hospitals in Chicago (Bergen 2). These hospitals, which include the Northwestern Memorial Hospital and the Prentice Women’s Hospital, are known to provide important healthcare services to patients who cannot afford to pay the expensive costs in private hospitals (Bergen 2). These unfavorable healthcare policies among others are bound to be more frequent and the resultant problems may promote the emergence of other bigger ones unless immediate action is taken.
The 2 advantages I see in these three systems are nonprofit organizations and government hospitals. "Nonprofit entities may be "sponsored" by various types of organizations" (Williams & Torrens, 2008, pp.185). Nonprofit is always adding new partners to their hospital's sponsorship to make sure the patients get taken care of properly. Nonprofit hospitals would not be able to take care of their patients if they do not accept donations. "Most nonprofit hospitals operate in a manner similar to other types of hospitals by employing modern management techniques, sophisticated information systems, and other principles of twenty-first-century management" (Williams & Torrens, 2008, pp.185). Our government funded hospital are helping people that are in need, too. The state and local government hospitals covers those who are on Medicare or Medicaid. The two disadvantages of these three systems are for-profit expenses and the care that is provided to the patients. The expenses for the for-profit organizations are outrageous even with insurance. For-profit organization offers more up to date equipment, but still has a mortality rate. "For-profits had 19 percent higher costs and 2 percent higher death rates" (For-profit, 2016). The for-profit hospital are expensive and there is no guarantee of good health
Financing health services in the United States is very important and involves an excessive amount of health institutions and activities. Health services are supported by several methods to create revenue that most hospital, clinics, and treatment centers use for daily operational costs (World Health Organization, 2006). These methods are: general taxation of the state, county, or township/municipality, Medicare or Medicaid or other socialized health insurance plans, voluntary and private health insurance and lastly, donations to health charities accepted from non-profit organizations, donations
The main characteristics of a non profit hospital are first and foremost to give good to the public. The term good can be broken down to different categories such as good services and provides health education to the public as a matter of good services. A non profit hospital also has to meet up requirements with the IRS about every 3 years or so. Additionally to this such hospitals need meet other requirements that measure the quality of the health services given to the public.
It has been noted that an insured patient is good for business, whereas a non-insured patient is bad for business. By selecting an area of a community that has a high percentage of insured patients is where a for-profit organization can seek to be a successful organization, and be able to provide profits on return on investments to its owners (Andre, C., & Velasquez, M., n.d.).
While not-profit-driven hospitals get significant tax reductions, some don 't give free or sponsored consideration to a higher rate of patients living in destitution than their profit driven partners, as
In the United States almost all levels of healthcare are delivered by the private sector providers. Many hospitals and health facilities are owned and run by profit making companies. Doctors and other health workers are either independent practitioners or happen to work for private-sector healthcare institutions. Access to healthcare is acquired through
In today’s health care system, “quality” and “safety” are one in the same when it comes to patient care. As Florence Nightingale described our profession long ago, it takes work and vigilance to ensure we are doing the best we can to care for our patients. (Mitchell, 2008)