What are some business and financial implications of the differences
between community not-for-profit hospitals and large academic medical
centers that may affect staffing, programs offered, and policies and
procedures?
According to the American Hospital Association (2022), more than half of
nongovernment owned community hospitals in the U.S. are not-for-profit
hospitals while nearly 24 percent are for-profit. Non-profit hospitals are
exempt from paying federal, local, and state income and property taxes and
are typically looked at as charities, while for-profit hospitals are typically
owned by investors and run as a business (Burns, 2021). (However, contrary
to popular belief, non-for-profit hospitals still earn profits.( At the same time,
many for-profit hospitals can be more expensive to run, but in many cases
these types of hospitals invest more into advancing medical technologies,
which could be one factor that contributes to these higher costs (Burns,
2021).
What financial impacts could result if a for-profit organization was built
within your community?
The building of any hospital, whether for-profit or non-profit, would have a
financial impact on any other hospital that was already in an area.( Despite
the title of “non-profit,” non-profit hospitals still can still make a profit, the
same as a “for profit” hospital (Shi & Singh, 2017).( Therefore, building any
hospital in the area would create competition and patients could be lost to
other hospitals for a variety of reasons including dissatisfaction with current
services, location, quality of services, or the types of services available.
((
References
American Hospital Association. (2022). Fast Facts on U.S. Hospitals,
2022.(https://www.aha.org/statistics/fast-facts-us-hospitals
Burns, D. (2021, September 21). Nonprofit vs. For-profit
Hospitals.(https://www.incrediblehealth.com/blog/nonprofit-vs-for-profit/
Shi, L. & Singh, D. (2017).(Essentials of the U.S. Health Care System.
Burlington, Massachusetts: Jones & Bartlett Learning
