Both non-profit and for-profit healthcare organizations play a critical role, especially concerning addressing the health care needs of people in society. Basically, all hospitals, regardless of their mode of operations, serve patients across socio-economic backgrounds, and they employ almost similar health professionals. However, they may have differences in terms of benefits. One of the major benefits of a for-profit healthcare organization is the ability or freedom to make profits ( Doroghazi, 2016) . Therefore, for-profit organizations are likely to enjoy financial stability, allowing them to provide quality care services to patients. On the contrary, the main benefit of non-profit healthcare organizations is that they do not pay taxes, which means that they have less financial burden compared to for-profit organizations ( Herring et al., 2018) . Thus, it is also possible for a non-profit healthcare organization to remain financially stable and provide quality services to patients.
Besides, for-profit health organizations are determined to serve a specific group of clients or patients with the primary intention of maximizing revenue and profits ( Doroghazi, 2016) . They have a defined market segment, which enables them to provide quality and customer-based services because they understand the needs of their clients. No-profit healthcare organizations, on the other hand, serve diverse customers. Thus, they have a broad customer base that can help in generating more revenue that is needed to improve the quality of care services. Consequently, a report that was released by Health Affairs revealed that non-profits healthcare organizations are more profitable than their for-profit counterparts (Masterson, 2017). Also, both for-profit and non-profit healthcare organizations often enjoy good leadership due to the determination to meet the set goals and objectives. Therefore, even though for-profit and non-profit healthcare organizations have different objectives, they are both beneficial to patients and the community at large.
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References
Doroghazi, R. M. (2016). Negative Secular Trends in Medicine: High Hospital Profits. The American journal of medicine , 129 (11), 1141-1142.
Herring, B., Gaskin, D., Zare, H., & Anderson, G. (2018). Comparing the value of nonprofit hospitals’ tax exemption to their community benefits. INQUIRY: The Journal of Health Care Organization, Provision, and Financing , 55 (1).
Masterson, L. (2017, May 25). Nonprofit, for-profit hospitals play different roles but see similar financial struggles. Retrieved from https://www.healthcaredive.com/news/nonprofit-for- profit-hospitals-play-different-roles-but-see-similar-financ/442425/
