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Not-For-Profit Healthcare Provider Case Study

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Explain the difference between a for-profit and not-for-profit healthcare provider.
For the most part, I have always thought that the difference between a for- profit hospital vs a not-for -profit hospital was the reflect on healthcare costs for consumers. Therefore, the majority of healthcare consumers do not know the extensive process of who owns and operates these two different types of hospitals. According to White (2012), “For-profit hospitals are typically owned by large corporate systems or smaller investor-owned corporation. Not-for-profit hospitals may be further segmented into those that are publicly funded and those that ae privately funded. (p.10)” Therefore, the ownership and taxation process of these two hospitals are what makes them different. For-profit hospitals are required to pay taxes while, not-for-profit hospitals are exempt by the government. Studies have proven that NFP hospitals can save billions of dollar each year with the benefit of not having to pay taxes. Although, an NFP hospital has to obey by certain guideline by the government in ways to benefit the community. …show more content…

As one of the guidelines for receiving an exempt taxation, NFP hospitals are required to report on services to help improve the community. For instance, a NFP hospital is more likely to offer preventative health education and programs to help patient stop smoking. For example, a patient may be asked to fill out a survey on the quality of care that he/she received during the course of treatment. With these examples, it shows that by providing these services to the patient, not only helps improve the patient health but, the community as a whole. As for the FP hospitals, we hope that they decide to take action towards making these types of service mandatory in the course of patient

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