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The Pros And Cons Of For-Profit And Nonprofit Healthcare Organizations

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Organizations that operate for-profit healthcare argue that they offer patients more options and flexibility. On the other hand, nonprofits claim to provide a superior patient experience and are more cost-effective. In keeping with their charitable mission and community focus, nonprofit hospitals are often affiliated with a particular religious denomination. For-profit hospitals are either owned by investors or shareholders of a publicly-traded company. For-profit healthcare entities are more likely to prioritize treatments that generate higher profits, such as open-heart surgeries. They are also more likely to downplay unprofitable services like psychiatric emergency care or substance abuse treatment. Nonprofit hospitals are typically driven …show more content…

Despite being more accessible and flexible to patients, for-profit healthcare organizations are more costly than nonprofit healthcare organizations. Nonprofit healthcare organizations offer patients a better overall experience, but they must demonstrate a community benefit to remain exempt from federal, state, and county taxes. The earnings of nonprofit organizations are reinvested in their services to enhance the quality of care. These organizations are not subject to taxation, so the salaries provided to medical professionals are higher than those in for-profit organizations. Patients can choose the healthcare organization that best suits their needs. In the healthcare industry, for-profit and nonprofit organizations play similar roles in the delivery of health services. The difference is more pronounced in tax payments and the use of profits. Nonprofit healthcare organizations prioritize serving the community over profits. Any earnings are used to improve their services. These hospitals provide medical care at little or no cost to uninsured individuals. These organizations are exempt from taxation as they exist to serve the community and provide healthcare to those who cannot afford high medical

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Due to lack of merit to determine what exactly charity is, many of these organizations have interpreted these the laws as they like (Owens, 2005). This has led to many offering poor services, charging the needy and poor hospital facilities. I think the government should eliminate tax exemptions from not-for-profit health organizations and instead use the tax money to support private institutions to help the poor and uninsured access quality medication in their

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The first is a contract directly with the Oregon Health Authority that pays the association $428,000 a year. Second, and far more lucrative, is a private arrangement between the hospitals and the OAHHS that pays the association 1 percent of the tax collected. That's currently about $5.5 million a year and compensates the association for helping redistribute federal matching dollars to hospitals. "Is it appropriate?"

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The public sector is funded and financed by the state and government for Medicare and Medicaid coverage and broad range of different medical services and treatments. As for the private sector it shares different structures but collaborates and often corresponds with public sector amenities. Some of the private sector examples are employee assistance programs in the workplace, and managed behavioral health and they are starting to associate with public organizations to help patients. Other federal supported systems like the U.S Department of Defense (Tricare) and U.S Department of Veterans Affairs (VA) share both private and public sector care systems but different care service systems. Also, care services are also different for children, Native Americans, and seniors.

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Many safety-net clinics have specific legislative mandates to provide health care services to the medically indigent as a condition of federal or state funding and/or reimbursement from public health programs. For example, whether operated by public agencies or private nonprofit organizations, federally qualified health centers (FQHCs) and FQHC look-alikes (described further in Section VI) are required by federal law to provide certain services. Similarly, counties operate clinics to provide services pursuant to the Section 17000 mandate under state

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What if it were discovered that the American Red Cross behaved unethically, such as consistently responding only to rich, white neighborhoods first in times of natural disasters? Or that they only provide blood to affluent people or those that have made donations to the American Red Cross? Or that they mishandle the notification of death or injury to loved ones serving overseas or handle it unprofessionally? These scenarios are unethical and would tarnish the company’s reputation. The public’s trust in the foundation would be shaken, probably irreversibly.

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United Way is another non profit organization that assists people all around the world. They have 2.6 million volunteers (united way). Fifty million lives have been impacted by the assistance from the United Way and their volunteers (united way). The three main things United Way focuses on improving are, education, income, and health. Volunteers along with tutors assist families with children by providing them with learning tools and programs.

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In other words, if many people are making decisions, the decision-making process can be less effective. Nonprofit organizations have little interest above and beyond the patients and providers, but not every insurance or healthcare organization is nonprofit. When investors have a stake in the healthcare system, the patient is often removed from the number one priority list and replaced with priorities involving increasing profits and reducing expenses. Additionally, many insurance companies retain the right to deny services, treatment and access to non-network providers, which means even if the provider says the treatment is necessary, the insurance company may deny the coverage for its own

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These organizations may include local community-based organizations, national advocacy groups, professional associations, and online resources. It is important to ensure that the organizations are reputable and align with ethical

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For example, both types of organizations provide comprehensive primary care to persons of all ages, regardless of their ability to pay or health insurance status. The way that they differentiate is that FQHC is a reimbursement designation from the Bureau of Primary Health Care and the Centers for Medicare and Medicaid of the United States Department of Health and Human Services (wikipedia.org, 2016). The Free Clinics, on the other hand, care is made possible through the service of volunteers, the donation of goods and community support. For the most part, funding is donated on the local level, and if there is any government funding, it is microscopic (wikipedia.org, 2016).

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With regard to monetary resources, nonprofit organizations are income tax exempt, according to the Internal Revenue Service (IRS); yet the level at which charitable giving is tax deductible varies according the IRS categories of nonprofit organizations (Worth, 2017). Ultimately, this privilege should cause nonprofit organizations, regardless of where how they operate with the spectrum of the two models, to effectively expend resources. Specifically, the volunteer spirit model encourages volunteerism centered on a democratic philosophy of sharing the burden of the cause, and this create a more effective foundation for using charitable donations directly for the cause or service (Brainard & Siplon, 2004). In contrast, the economic model, leaning toward paid staff and relying on material or monetary incentives, may be using charitable donations ineffectively (2004).

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Known as the public or statutory sector whereby services are provided through the government, funded mainly by taxes and national insurance contributions; the private sector, owned by individuals or companies, normally run for profit and charging for their service; the voluntary (nonprofit) sector formed by charities who are supported mainly through donations, grants and lottery funding; the informal sector, made up of friends and family. With the reforms in community health care this led to an explosion in the voluntary sector. This has continued in an upward trend as the government has encouraged growth within the private and public sectors also (Channel Four Learning,

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While we have many social welfare programs here in the United States I personal believe Medicaid has been very successful and has benefited many families in America. In 2014 it was recorded that medicaid helped roughly "64.9 million low-income adults" The largest share, around half was reported to cover 29.5 million children. Second was 19.2 million adults. While this is a large amount of citizens, a big part of Medicaid was it would pay for forty percent of all births recorded in the United States.

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Americans Struggling to Pay for Healthcare In a period of rising social protection costs and spending necessities, a growing number of Americans encounter issues paying for required human administrations organizations. Among the uninsured, finding a provider who offers sensible organizations is attempting, most ideal situation, and the sit tight for a gathering with a provider offering free or reduced esteem organizations can be considerable For those with Medicaid scope, state spending prerequisites may impact their capability for scope, the organizations offered, or their ability to find a provider willing to recognize the Medicaid cost schedule Those with Medicare go up against copayments and bear the expanding costs of professionally recommended

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Healthcare Reimbursement Healthcare is made up of many factors. Among those factors are provider reimbursement and the different types of financial methods used by the patients to acquire healthcare services. Provider reimbursement is important and necessary in order to maintain the continuation of healthcare. Like every organization, including non-profit organizations, require revenue in order to pay their healthcare providers, expenses accrued, and to obtain the supplies needed to aid in rendering services. With that said, this is why there are many financial methods such as third-party payers, government agencies, private health insurance, and patient payments.

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Non-profit sector is very different from both the public and private sectors. It is a tax-exempt organization or social sector which is mainly formed for the purpose of education, religious, art, animal right or charitable (Hatten, 1997). Popular examples for the non-profit organization are World Wildlife Fund, Do Something, United Nations Children’s Fund (UNICEF), Green Peace and Malaysia Red Crescent Society. The ownership of the non-profit organizations does not belong to anyone, even the founder of organization, which is very different from other form of business.

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