12 Jun 2022

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Profit and Non-Profit Health Facilities

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Academic level: College

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Healthcare facilities fall into either profit or non-profit organizations. A non-profit healthcare facility aims at providing affordable healthcare service mainly to people who cannot afford to pay for their healthcare. In most cases, the non-profit healthcare aims at serving the communities, and most have a religious background. In an economic recession, non-profit healthcare facilities are essential because it provides healthcare to the people at an affordable price (Folland, 2017) . On the other hand, profit healthcare facilities focus mainly on generating profit as they offer healthcare services to the people who afford to pay for their healthcare services. The design of the profit healthcare organizations and hospitals is that of traditional business sense because they must pay taxes like any other business enterprise and they focus on supporting the community. This paper focuses on non-profit (Charitable Hospital) and for-profit (Hospice Care) healthcare facilities and the economic behaviors and financial decisions mandated by the funding sources.

Charitable hospitals play a significant role in providing healthcare and improving the health status of more than half of the population in many countries all over the world (Hall, 1991) . Charitable health facilities benefit from tax exemption and even tax-deductible contribution and in return should provide healthcare benefit back to the community and protect its patients. Charitable healthcare facilities work under The Affordable Care Act that ensures that the patients in the charitable hospitals or healthcare facilities have access to financial assistance and protect the patients against the abusive collection and more importantly provide the high quality healthcare service to the people they serve.

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Charitable healthcare facilities should be operating a full-time emergency to everybody regardless of their ability to pay or not and this is an indicator that the facility satisfies the community in terms of healthcare service. If the facility is not operating full-time emergency, it means that it does not meet the needs of the public and therefore not working for the benefit of the entire community or people the facility is serving. The governing body of charitable health facilities should not be a member of medical or administrative staff because if that happens, it means that the hospital might be serving the interest of the private instead of the public or the entire community (Kane, 2006) . Medical or administrative staff should not participate in the decision-making process because they can influence the decisions compromising the results. However, there are areas that the medical staff should not experience any form of control or restriction, for instance, addressing appropriate medical treatment, and conducting medical research and other studies. It is also important to note that charitable hospitals should admit patients who afford non-emergency services by themselves or through health insurance; because if they do not, it means that the hospital is operating for the benefit of its staff and not for the community.

For-profit hospice care aims at providing quality, humane, and compassionate care for the people experiencing incurable diseases and at the end make profits out of the healthcare services (Dees, 2003) . The ultimate objective of hospice care is to ensure that the patients receive proper attention towards the end of their lives. The patient or the family in conjunction with the healthcare providers contribute a lot when it comes to hospice care. The family of the patient in most cases is the one to come up with the decision that the patient to be given hospice care because people believe that if the hospital management or the healthcare personnel suggest that, they seem to have given up in the treatment of the patients. Most people who receive services from these for-profit health facilities can pay for the bills that come from healthcare services, the hospitals do also pay taxes to the State, and in case the facility undergoes liquidation, the stakeholders will share the dividends among themselves.

Some hospices have managed to construct their for-profit hospice facilities that are very costly to operate and to cover the cost they need to fill the beds so that they can be able to cover the hospice heads. Some of the hospices decide to manipulate patients even if the patients are willing to remain at their home beds so that they can be able to decrease loses and increase the amount of profit. Medicare Hospice Reimbursement pays about 84% of the hospice care cost to protect the families and patients from exploitation (Thompson, 2012) . They always pay at per-diem rate meaning each patient receives the same amount of payment per day regardless of the diagnosis or personal care needs.

In conclusion, there are non-profit and for-profit healthcare facilities that all aim at providing healthcare to the people. Non-profit aims at providing healthcare to the community especially those who are not financially stable and cannot afford to pay for health services and in most cases non-profit facilities do not pay tax to the government. , on the other hand, provide healthcare to the patients who can afford to pay their health services to make a profit, but they also pay taxes to the government.

References 

Dees, J. G. (2003). Sector-bending: Blurring lines between nonprofit and for-profit. Society, 40(4) , 16-27.

Folland, S. G. (2017). The economics of health and health care. Taylor & Francis.

Hall, M. A. (1991). The charitable status of nonprofit hospitals: toward a donative theory of tax exemption. Wash. L. Rev., 66 , 307.

Kane, N. M. (2006). Tax-exempt hospitals: what is their charitable responsibility and how should it be defined and reported. Louis ULJ, 51 , 459.

Thompson, J. W. (2012). US hospice industry experienced considerable turbulence from changes in ownership, growth, and shift to for-profit status. Health Affairs, 31(6) , 1286-1293.

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StudyBounty. (2023, September 14). Profit and Non-Profit Health Facilities.
https://studybounty.com/profit-and-non-profit-health-facilities-essay

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