For-profit hospitals are those hospitals investor owned chain of hospitals or those owned by shareholders of a publicly traded company. Most of these hospitals owe their success from their offering of profitable care services for affluent individuals who can afford such care which can be very expensive, whilst avoiding the areas which do not bring any profit towards their course. Nonprofit hospitals on the other hand provide medical care services to achieve their mission in fulfillment of what a community needs rather than being driven by what is profitable to the hospital. These type of hospitals also provide educational services and preventive care services.
For profit and nonprofit hospitals although different, have some similarities. One major similarity is how they go about their accounting for monetary transactions. Both hospitals must report their finances to the Internal Revenue Service. The financial management of nonprofit hospitals is also similar to the process of financial management of for profit hospitals as they both look into management of their finances in a manner that does not ensue their exploitation. Even without the view of gaining profit, nonprofit hospitals earn profits as for profit hospitals do and the profits are retained for future provisions for example services for both, but at different amounts.
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One of the major differences between nonprofit hospitals and for profit hospitals is ownership and taxation. Nonprofit hospitals are not usually taxed ass for profit hospitals are expected to pay federal incomes and state and local property taxes. For profit hospitals are owned by shareholders or investors whilst nonprofit hospitals tend to be affiliated with certain religious denominations. Another difference is in their expenditures. For profit hospitals allocate more of their resources into marketing and advertising their services as compared to the nonprofit hospitals who spend more on what the hospital needs.
In my opinion, nonprofit hospitals offer the best care as the patients are their first priority, regardless of them gaining profit or not. I would prefer to be a patient in a nonprofit hospital since my health is top priority to both the hospital and I, rather than what health service I can afford.
References
David, G. (2009). The convergence between for-profit and nonprofit hospitals in the United States. International Journal Of Health Care Finance And Economics , 9 (4), 403-428. doi: 10.1007/s10754-009-9068-0
Daily Briefing primer: What's the difference between for-profit and not-for-profit hospitals?. (2018). Retrieved from https://www.advisory.com/daily-briefing/resources/primers/whats-the-difference-between-for-profit-and-not-for-profit-hospitals
