Nonprofit Healthcare Vs. Non-Profit Research

Decent Essays
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
Get Access