MHA 506 Week 5 (650 words)

Aspect of Comparison

For-profit health care organization

Not-for profit health care organization

Level of centralization

For profit healthcare is majorly decentralized and decisions are made by individuals under the authority of directors and other employees in the managerial positions. The implementation of policies is not subject to the approval of those in senior managerial positions (Eiland, 2015). There is lack of uniformity in policies implemented in various subsidiaries of for-profit healthcare organizations.

There is a high centralization of decision making in which subsidiary hospitals are not permitted to formulate policies affecting their activities without the approval of agencies such as regulatory bodies, government departments, or healthcare secretaries. There is consistency of policies affecting practices in all not-for profit organizations.

Levels of Access to capital markets

There is low chance of access to capital market due to restrictions and barriers to private firms that operate for-profit healthcare organizations. The operators of for-profit health care organizations have to comply with a number of terms and conditions before accessing loans, grants, or bonds for improvement of their services (Paul III, Godby, Saldanha, Valle & Coustasse, 2016).

The likelihood or the ability to access the capital markets funds is high due to few restrictions. Most not-for profit organizations also get loans and grants at subsidized interest rates (Shugarman, Nicosia & Schuster, 2007). A significant amount of funds for operation are provided by the government.

Strategic marketing differences

The marketing activities focus on improving the welfare of the organizations such as high returns on investments, increase in the number of patients who seek their services, and increased market share. The strategic marketing activities are aimed at achieving a competitive advantage over other health care providers in a region. Marketing is done using private funds.

The strategic marketing activities are focused on increasing public health quality such as by increasing accessibility to healthcare services. Marketing activities are also aimed to promoting the affordability of health care services provided to residents of lower economic status in order to improve their health. Marketing is usually done using public funds.

Quality Attributes

The quality of services is usually high due to the need to increase competitiveness and comply with the quality standards expected of a health care organization (Shugarman, Nicosia & Schuster, 2007). The quality of services is also high because most organizations aim at achieving customer satisfaction and retention.

The quality of services is usually not high when compared with for-profit health care services because of lack of profit drive and lack of accountability. Most employees of not-for profit health care services provide their services with the objective of improving access to health care services without necessarily improving the quality of treatment, medication, or patient education services (Eiland, 2015).

Management of pricing and volume

The pricing is usually high and patients have to incur high cost to access services such as careening, treatment, and medications. The high cost of treatment is due to the fact that for-profit health care organizations incur high cost of operation such as taxes and licensing fees which has an impact on their profitability (Paul III et al., 2016). Management of volume is achieved by the expansion of a medical facility or increasing the number of staffs.

The pricing is comparatively low and most services are provided free of charge. The payments for staffs are usually high and most employees feel satisfied with their earnings.

The management of volume is achieved by increasing funding for the construction of more healthcare facilities.