Reference no: EM133435040

A hospital that operates primarily to generate income for its owners is known as a "for-profit" hospital. That means they are driven by shareholder returns and are consistently ranked as the world's most expensive healthcare providers. These medical facilities are similarly organized in a hierarchical business structure. Important medical care is provided to low-income and uninsured patients by for-profit hospitals, making them an integral part of society. Also, they have less financial problems than non-profit hospitals since they give less uncompensated care (Moon & Shugan, 2020). On the other hand, charitable groups such as churches and schools provide essential support to non-profit hospitals. This means that all members of society, including the poor, have access to medical treatment, regardless of their ability to pay. In this way, the hospital receives the benefits of the profits rather than the shareholders. Some hospitals receive some tax exemptions from the government, but not from the likes of Medicare and Social Security (Moon & Shugan, 2020). For decades, academics have tried and failed to reconcile for-profit and non-profit hospital models. This paper will investigate these variations, talk about them, and determine which is the superior option in terms of security, quality, and convenience. Patients are treated in both types of hospitals, as are nurses and doctors; however, the clinical services they provide are governed by different sets of rules in academic and community hospitals. Hospitals that are run for profit and those that are run purely for the sake of their community have quite distinct cultures. They also differ greatly in tax status, which has far-reaching repercussions for the local economy. There are taxes that hospitals who are in it for the money have to pay to both the federal and state governments (Cheney n.d). Government spending on infrastructure like roads and schools, as well as on economic development, is made possible by tax revenue. Cost-consciousness and operational discipline are emphasized when an organization is under financial strain, as stated by Cronin et al. (2019). Because of the need to maximize profits, for-profit medical facilities value efficiency above all else.

The operational discipline of the hospital staff is another unique aspect. If maximizing profits is a top priority for the hospital's shareholders and its top executives, then the organization as a whole will have far greater operational discipline than its counterpart. As a result, for-profit hospitals are more regulated than their non-profit counterparts in every aspect of their operations. To have operational discipline means that the hospital will be responsible, accountable, and clean (Cheney n.d). One more distinction between the two kinds of hospitals is the financial burden each one carries. As with any for-profit enterprise, the top executives at for-profit healthcare facilities exert considerable financial pressure. The hospital's financial performance requirements necessitate that the CEO report to the analysts; the hospital leadership does not want to disappoint the analysts (Cheney n.d). The finance team can push themselves to achieve their targets because of this kind of pressure.

The size of the two types of hospitals is likewise different. Thus, for-profit hospitals are spread out more than their non-profit counterparts. The American Hospital Association estimates that there are more than 4,862 community healthcare facilities across the US, with 2,845 of these facilities being non-profit (Cronin et al., 2019). However, only 1,034 hospitals are privately owned, while the rest are either publicly funded or owned by municipal governments. For-profit hospitals have an advantage over their non-profit competitors because of their ability to scale and, as a result, have easier access to finance. They are able to outpace non-profit organizations because they have easier access to funding. One additional major distinction between the two kinds of medical facilities is their level of competitiveness. In this context, for-profit hospitals have more leverage than non-profits when negotiating managed care contracts. As a result, non-profit hospitals can acquire valuable lessons about making the transition from volume to value from their for-profit counterparts.

Based on the aforementioned analysis of the literature, for-profit hospitals are preferable to non-profit ones in terms of safety, accessibility, and quality. Access to resources and knowledgeable staff is a major factor in patient safety, and for this reason, for-profit hospitals tend to be safer than their non-profit counterparts (Pinz et al., 2020). Patients can get safe care at for-profit hospitals with access to societal best practices. Of course, for-profit medical centers also have little trouble providing secure facilities (Pinz et al., 2020).

Non-profit hospitals are preferable because they are obligated by law to provide emergency services at no cost to patients. Their job is to save lives, thus they will make sure all of their patients are safe before pursuing payment. Patients without the financial means to continue their care may be discharged from for-profit hospitals. Treatment for any medical emergency, regardless of the patient's ability to pay, is available at non-profit hospitals (Johnson et al., 2019). When compared to their non-profit counterparts, for-profit hospitals are vastly superior in terms of quality. There has been a significant increase in the number of hospitals operating for profit, yet no sane investor would put their money at risk by neglecting safety or care. Since they are equally concerned with making a profit, they will do their utmost to provide the services for which their customers are willing to pay. Any hospital, whether non-profit or for-profit, must always put the needs of their patients and staff first (Johnson et al., 2019). Because they are familiar with hospital procedures and budgeting, communities and governments should play a major role in monitoring healthcare facilities. Patients will be able to focus on getting well without worrying about whether or not they can afford the care they need.

As far as what type of hospital would be better, you indicated, "for-profit hospitals are preferable to non-profit ones in terms of safety, accessibility, and quality," but also stated, "Non-profit hospitals are preferable because they are obligated by law to provide emergency services at no cost to patients...they will make sure all of their patients are safe before pursuing payment."

Q1. Are you saying that for-profit hospitals are a better option, unless the individual doesn't have the ability to pay?