Profit Healthcare Organizations Vs. Non Profit Organizations

1617 WordsDec 17, 20147 Pages
Profit healthcare organizations vs. Non-profit healthcare organizations Introduction This paper will discuss about organizational structure, philosophies and business practices of for-profit healthcare organizations and non-profit organizations. The most essential dissimilarity between nonprofit and for-profit organizations is the reason they exist. As for-profit organization in healthcare, they are generally found to generate income for entrepreneurs and their employees. However, nonprofits are generally found to serve a humanitarian or environmental need. Furthermore, nonprofits an organization does not pay property taxes due to a consideration of a charity and they establish a certain community in agreement with state and federal (Ingram, 2014). For-profit organizations they recommend services that are important in the marketplace, choosing to disseminate profits between employees, owners, shareholders and the company itself. Also, the company shares, stock to increase revenue in order to extend the hospital activities (Ingram, 2014). On the contrary, nonprofit hospitals accept everyone who comes in the doors and normally, they get busier than for-profit hospital (Writing, 2014). Non-profit organization (NPO) is an association that uses total welfare to accomplish their goals than dispense them as profit. The non-profit organization goals and purpose is not in terms of wealth, but in terms of giving significance to the groups of people they administer to (Wikipedia,

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