In the US, both for-profit and nonprofit healthcare organizations provide services to citizens. By 2003, more than 62% of healthcare systems were nonprofit while for-profit organizations, including business modeled organizations, are for profit. While the same authorities regulate and manage for-profit and not-for-profit organizations, there are several varied differences that at times, affect the quality of impact they bring in a community.
The main pro of not-for-profit hospitals that defines them provide charity to members of the communities where they serve. This means that the services offered do not result in profit hence lower. Due to the charity provided by these organizations, not-for-profit healthcare systems enjoy a lot of support from local communities in the form of fundraising and good general rapport. Another significant benefit of nonprofit organizations is that they gain a tax-exempt from provincial and federal governments. It, therefore, becomes easy to run them as the cost of service provision reduces. According to Wolfe, Woolhandler & Himmelstein, (2018) , not-for-profit systems are more likely to offer such services as intensive care burn and high-level trauma wards.
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Research indicates an increase in mortality rates among hospitals that converted from nonprofit to for profit. As they do not acquire tax exempt, for-profit hospital systems tend to be more expensive than not-for-profit systems. Also, Hockenberry & Becker, (2016) noted that for profit, hospital systems are more inclined to reduce staffing and use such medical solutions as sedatives to reduce the cost of operations. This has raised questions on the morality of some of the hospitals based on this system. Also, Hoxha et al., (2017) noted that a woman is 17% more likely to have a C-section during delivery in a for-profit system than a nonprofit. For-profit hospital systems focus on high-end high revenue treatments. Therefore, I think a nonprofit healthcare system is better than a for-profit one.
References
Hockenberry, J. M., & Becker, E. R. (2016). How do hospital nurse staffing strategies affect patient satisfaction?. ILR Review , 69 (4), 890-910.
Hoxha, I., Syrogiannouli, L., Luta, X., Tal, K., Goodman, D. C., da Costa, B. R., & Jüni, P. (2017). Cesarean sections and for-profit status of hospitals: systematic review and meta-analysis. BMJ Open , 7 (2), e013670.
Wolfe, S. M., Woolhandler, S., & Himmelstein, D. U. (2018). It is time to liberate hospitals from profit-centered care.
