Hs 542 Week 5 Assignment

941 Words4 Pages
Nonprofit versus for-profit healthcare and organizations analyze the characteristics of each type of organization and the factors that impact operations: “As tax-exempt organizations, nonprofit healthcare providers have a duty of serving communities and providing care without regard for a patient's ability to pay. The financial bottom line of nonprofits is covered by charging more to patients who can pay bills, to cover those who can't. For-profit providers look at healthcare as a business, with a financial bottom line that produces profits distributed to shareholders. There is no clear evidence that nonprofit hospitals or for-profit hospitals as a whole are better than the other. A 2002 Canadian study of 26,000 U.S. hospitals, found that for-profit hospitals had a 2 percent higher mortality rate than nonprofit hospitals. No other study has shown outcomes to be clearly better in nonprofit hospitals.” Source: For-Profit Vs. Not-For-Profit Healthcare Providers | eHow.com http://www.ehow.com/facts_5974131_for_profit-vs_-not_for_profit-healthcare-providers.html#ixzz1uqmYmCls “The two types of hospitals differ mainly in regulatory rules. Non-profit hospitals do not need to pay property, sales, or income taxes. Despite these differences, the two types of ownerships have been becoming more and more similar and many hospitals have been switching ownership status suggesting that the hospital industry is less stagnant than the public perception assumes. For-profit and not-for-profit hospitals generate revenues through daily operations. For-profit hospitals are able to generate funds through issuing stocks while non-for-profit hospitals do not have this ability. Accordingly, non-for-profit hospitals can issue tax-exempt bonds and can accept tax-deductible contributions. Non-profits were created with the intention of servicing the needs of the poor. This subsequently led
Open Document