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Social And Financial Issues In Non-Profit And Not-For-Profit Hospitals

1307 Words6 Pages

Social and Financial Issues Affecting For-Profit and Not-for-profit Hospitals
Ofaa Nyanin

Introduction
Wherever there are people, there will be a need for doctors, nurses, and healthcare facilities. Hospitals face many issues based on their location and their organizational structure. One could argue that both for-profit and not-for-profit hospitals must prioritize the maximization of revenue to effectively provided services to patients. However, the perceived reasons for revenue maximization influences public perceptions of hospitals.
Both non-profit and for profit hospitals receive media attention for their different characteristics, quality of healthcare, and economic impact. The differences between for-profit and not-for-profit hospital …show more content…

An exemption from paying state and federal taxes on income and property.
Required reporting of community benefits offered by the facility. (The Advisory Board Company, 2015).”
Because non-profit hospitals are unable receive capital from investors. They have a more difficult time acquiring assets. This leads to often smaller organizations with less financial health.
Public Perception and Financial Issues
Not-for-profit hospitals are often perceived as providing better quality of care than their for-profit counterparts. The lack of investor influence tends to increase the perception of service for less profitable (uninsured, minority, disabled, etc.) patients. Even so, the smaller nature of these hospitals tends to result in less capital and less access to advanced …show more content…

This study may prove to calm the public’s concerns about the increased presence of for-profit hospitals. By converting to for-profit, not-for-profit hospitals can improve their financial health through increased revenue. The study also found that “nonprofit hospitals often act like for-profit hospitals” in that both organizations have the incentive to maximize their revenues (Neuhauser, 2014). Because the both hospital types operate to with revenue maximization as an objective, the only difference is the amount of revenue available to each organization

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