The main benefit of the academic medical center is that patients
have greater access to the newest medical advancements and clinical
trials that aren't accessible at other hospitals since doctors, nurses,
researchers, and teachers are all working together. There is a vast
opportunity for programs, policies, staff in AMCs. A nonprofit
organization can put its customers first than a for-profit organization.
The primary distinctions between the for-profit and nonprofit
systems are how they get money, who pays taxes, and who is
required to provide community services. Nonprofits must "service
the community's healthcare needs." Nonprofit hospitals are exempt
from paying taxes in exchange. For-profit systems benefit from
investors' money and have greater freedom in terms of the services
they provide, generally focusing on the most lucrative ones
(Masterson, 2017). For-profit hospitals have much more freedom to
choose their policies, staffing, programs, price options than not-for-
profit hospitals. Another difference between these two hospital
types is nonprofit hospitals are situated in neighborhoods with less
poverty, higher incomes, and fewer uninsured patients. In contrast,
for-profit hospitals serve lower-income populations, according to an
article published in Georgia Washington University.
Financially, having a for-profit organization in the community can
bring challenges and strengths to the community. For-profit
organizations can "provide state-of-the-art diagnostics and advanced
procedures" to make them look like leaders in the area, and it can't
benefit not-for-profit hospitals. The prices can be very different from
a nonprofit organization, and it can cause trouble in the community.
People with low income can suffer from such high prices. Efficiency,
affordability, and improved patient care are what a community needs
the most.
Citations
Masterson, L. (2017, May 25). Nonprofit, for-profit hospitals play
different roles but see similar financial struggles. Healthcare Dive.
Retrieved March 31, 2022,
from https://www.healthcaredive.com/news/nonprofit-for-profit-
hospitals-play-different-roles-but-see-similar-financ/442425/
Profit vs. Nonprofit Hospital administration: GW University. George
Washington University. (2021, July 15). Retrieved March 31, 2022,
from https://healthcaremba.gwu.edu/blog/profit-vs-nonprofit-
hospital-administration/#:~:text=In%20keeping%20with%20their
%20charitable,of%20a%20publicly%2Dtraded%20company.
What it means to be an academic medical center. Penn Medicine. (n.d.).
Retrieved March 31, 2022,
from https://www.pennmedicine.org/about/benefits-of-an-
academic-medical-center
