Profit vs Non Profit Hospitals

1004 Words Jun 21st, 2013 5 Pages
Profit vs. Non Profit Healthcare Organizations

Prepared By: Milton Flores

Table of Contents

I. Introduction……………………………………………………………………………………………………………………………………3

II. Definition of Non Profit Health Care Organization………………………………………………………………………….4

III. Definition of Profit Health Care Organization…………………………………………………………………………………4

IV. Issues facing Non Profit and Profit Health Care Organizations……………………………………………………….5

V. Options to improve operations……………………………………………………………………………………………………….6

I. Introduction
The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for
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Non profit health plans are estimated to serve over 40% or more of all private health insurance enrollees.
Nonprofit health care organizations are primary responsible and accountable to the communities and populations they serve. They are legally and ethically bound to do good for the benefit of their communities. Their governing bodies are comprised of leaders from the communities they serve. The earnings and reserves of nonprofit health care organizations are reinvested to benefit the community.(1).

III. Definition of Profit Health Care Organization.

For- profit health care and organizations have a misconception that this automatically means higher costs and a lower level of quality. There are several studies that directly contradict this assumption. In a study that was conducted by Blue Cross, the findings showed that there was not an increase in costs and that there was not a negative effect on the availability of health care.
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,
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