When we need a hospital facility we don’t necessarily question its financial status as for profit or non-profit. It is almost bordering on unethical to actually consider a hospital care facility as being primarily providing services to make money. What dollar value does one place on health and life? In reality there are functional differences in the two types of businesses. That’s also not the general public’s first line of conscience; however, in this current economic crisis for America, people must contend with these facilities as businesses.
The complexion of for- profit hospitals is actually on the frightening side. According to an article from Steffe Woolhandler and David Himmelstein published in the Canadian Medical Association Journal in 2004, a for-profit facility tend to have higher costs and lower quality of patient care including higher death rates and more frequent citations for quality deficiencies. Non-Profit hospitals were deemed more financially efficient and their extra revenues are invested in the hospital to provide improved services. For-profit hospitals have investors to be concerned with so profits are returned to investors rather than into the facility itself. Wages for employees in the U.S. tend to be basically lower, per hourly rate, for all workers in private for-profit hospitals than the average hourly rate for all workers in private nonprofit hospitals (Bureau of Labor and Statistics, 2005). Perhaps this is a contributing factor to decreased quality of care noted in for-profit facilities.
Nonprofit entities, hospitals included, operate under special provisions of corporate law per their states, and also under federal and state provisions that acknowledge the non-profit hospitals’ community service (Torrens, 2101, pg.185, para.2).
Three Major Trends that have occurred within the Hospital Sector
One trend noted in the medical industry is that of... [continues]
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(2012, 02). Hospitals Compared to Long Term Care Facilities. StudyMode.com. Retrieved 02, 2012, from http://www.studymode.com/essays/Hospitals-Compared-To-Long-Term-Care-926212.html
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