Operations of non for profit hospitals

Operations of non for profit hospitals

Feb 20,  · It actually isn’t much of a surprise that nonprofit hospitals are often more profitable than for-profit hospitals. If a private business doesn’t have to pay taxes, its expenses will be lower Sep 10,  · For-profit hospitals must balance community service with shareholder returns; operational efficiencies drive decision making. Nonprofit hospitals tend to plan for continued viability over the long-term; for-profit hospitals concerned with quarterly returns make short-term decisions that may not align with the needs of the communities they blogger.com: Karen Kahn May 25,  · However, for every hospital posting a profit, there are many nonprofit community hospitals struggling to reach profitability. In that same study, the majority of

Profit vs. Nonprofit Hospital Administration | GW University

View all blog posts under Articles View all blog posts under Online Healthcare MBA. The differences between profit and nonprofit hospitals lay the groundwork for a philosophical discussion about the merits and ethics of each approach. For hospital administratorsthere are also practical differences in operations of non for profit hospitals operation and management of these different kinds of hospitals. Here are some of the key distinctions between profit and nonprofit hospitals. In keeping with their charitable purpose and community focus, nonprofit hospitals are often affiliated with a particular religious denomination.

For-profit hospitals are owned either by investors or the shareholders of a publicly-traded company. While for-profit hospitals have traditionally been located in southern states, the economic collapse of the early operations of non for profit hospitals catalyzed the acquisition of nonprofit hospitals by for-profit companies.

As one might expect, nonprofit hospitals on average provide more uncompensated care than for-profit hospitals do. Contrary to what we might expect, however, for-profit hospitals tend to serve lower-income populations, while nonprofit hospitals tend to be located in communities with less poverty, higher incomes, and fewer uninsured patients.

One notable difference between nonprofit and for-profit hospitals is that for-profits allocate more resources to advertising and marketing. David Himmelstein, the co-founder of an organization that advocates a universal, single-payer health system in the U. S, argues that these are wasteful expenditures that divert patient dollars from things like equipment and training that could improve quality of care.

He further argues that marketing is wasteful because for-profit hospitals tend to be located in areas where there are few healthcare options, so patients have little choice in where to get care. Some argue, however, that investments in operations of non for profit hospitals technologies might be just as wasteful for hospitals that serve low-income communities, as patients likely would not be able to afford the more advanced and more expensive treatment they offer.

Furthermore, some nonprofit hospitals also spend money on marketing, because they recognize that they have to compete in the marketplace, regardless of their nonprofit status. Both exist on lists of the best hospitals in the country, and among the worst. There is no reason to believe that the quality and management of a hospital correlates to its tax status. Whether a hospital is nonprofit or for-profit should be of interest to its staff and to the community it serves, so that they can understand how the hospital operates and allocates resources.

How Hospital Management Affects Patient Care The Key To Saving Your Hospital George Washington University Healthcare MBA Program. The program provides traditional MBA core courses and specialized healthcare electives to help tailor the curriculum to your goals.

Skip to main content. Nonprofit Hospital Administration. For Profit vs. Nonprofit Hospital Administration July 15, operations of non for profit hospitals, View all blog posts under Articles View all blog posts under Online Healthcare MBA. Whom They Serve As one might expect, nonprofit hospitals on average provide more uncompensated care than for-profit hospitals do. How Expenditures Differ One notable difference between nonprofit and for-profit hospitals is that for-profits allocate more resources to advertising and marketing.

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Not-for-Profit Hospitals?

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Private equity firms now control many hospitals, ERs and nursing homes. Is it good for health care?

Jul 15,  · For-profit hospitals are owned either by investors or the shareholders of a publicly-traded company. While for-profit hospitals have traditionally been located in southern states, the economic collapse of the early s catalyzed the acquisition of nonprofit hospitals by for-profit blogger.com: The George Washington University May 25,  · However, for every hospital posting a profit, there are many nonprofit community hospitals struggling to reach profitability. In that same study, the majority of May 13,  · Private equity firms are buying up hospitals, nursing homes and ER operations. The drive for profits can run counter to helping patients, critics say