Medical institutions are considered to be the most respectable place to work. The tasks that doctors perform, from surgeries to breaking any bad news, requires respect for life. But over the time, with the establishment of private hospitals, it has become a matter of debate that which is better: For-profit or not-for-profit hospitals? It has been a debate that for-profit hospitals are better than the not-for-profit hospitals since they can generate profit for expansions and is free from governmental policies in operations. These are, however, vague reasons and I will go deeper in putting forward my point. What are the differences between nonprofit and for-profit hospitals?
Hospital authorities say there are just two
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While not-profit-driven hospitals get significant tax reductions, some don 't give free or sponsored consideration to a higher rate of patients living in destitution than their profit driven partners, as indicated by an investigation of California restorative focuses. That is on account of qualification criteria for expense excluded status are questionable and there are no base necessities for hospitals ' monetary help projects. In a statewide evaluation of 264 hospitals, scientists from UC San Francisco and Alameda County Medical Center in Oakland, California took a look at two sorts of uncompensated consideration in following non-repaid installments for the years 2011 to 2013. They inspected levels of "philanthropy consideration" in which restorative consideration is given to poor patients no desire of the installment. They likewise took a look at "terrible obligation," or unpaid bills, for therapeutic administrations. California was concentrated on in light of the fact that it is the main stage where profit-driven hospitals, notwithstanding not-for-benefits, are required to report philanthropy chair consumption.
The specialists, headed by Renee Hsia, MD, of the UCSF Department of Emergency Medicine and Health Policy Studies, found that among 200 not-for-profit driven clinics, a normal 1.9 percent of aggregate working expenses were coordinated to philanthropy care. This appears
In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons
Seven figure salaries are not a normal occurrence among hospital and health system executives. However, according to the Chronicle of Philanthropy, which does an annual national survey of nonprofit salaries, found that the five top-paid nonprofit chief executives in 2003 all worked for hospitals. On top of these exaggerated salaries are the attractive benefits such as bonuses, deferred income, retirement plans, country club memberships, and countless other perks that are attracting the wrong kind of leaders to these organizations. Hospitals must provide their social responsibility to the community before spending outrageous salaries for chief executives. It is an unethical practice to pay executive teams more than the total spending on the necessitous care of the community. For example, the survey identified 17 hospitals in California where the total compensation to CEO’s alone exceeded the total cost of charity care of their respective organizations. These excessive salaries could have easily
Good morning, I appreciate the opportunity to meet with you to address concerns that have recently arisen in the media regarding the tax-exempt status of nonprofit hospitals. In particular, those concerns relate to the issues of patient collection tactics and partnerships with for-profit entities. I am here today to assure you that at St. Michael’s Hospital for Children, we are not only aware of the requirements to be classified as a nonprofit organization, but that we also work diligently every day to make certain we remain compliant with the established standards set forth by those requirements. We comply with GAAP standards for accounting. For any of you that are not familiar with that term, GAAP standards are the “authoritative
The debate over non-profit versus for-profit healthcare organization has been ongoing, does one provide better care than the other? Do the operations of for profit perform better than the non-profit organizations? Are the criticisms about for-profit organization validated and is there proof? The goal is to examine those questions as well as offer options to improve the financial and operational performance of non-profit and for-profit organizations criticisms.
An increasing issue within the health care field is the inability to collect debt from the growing population of uninsured or underinsured patients. Healthcare organizations may be struggling to meet operational margins because the industry has never treated its customers like other retail-oriented sectors of the economy. A McKinsy and Company report states that hospitals incur sixty billion dollars in bad debt annually because they typically collect only ten to twenty percent of a total uninsured patient balance after service. (MacKenzie, 2009) This is due to a number of reasons, including poor accounting practices or a lack of patient information. This paper will discuss how one hospital, California’s Sutter Health, has taken steps to
The White Paper released by the Camden Group and presented for review by the contributing authors (Rebecca Bales, Kelly Tiberio, and Tara Tesch) offers a perspective from one of the nation’s leading Health Care advisory firms. The paper brings to the forefront the characteristics of Non-Profit and for-profit hospitals, and the outlook for conversion from one industry classification (Non-Profit into a For-profit) business entity. Contained within the paper are a wide-range of topics with regards to the similarities between the two health care models, laws and regulations from both the State & Federal levels that guide their respective classification, market outlook for the health care industry and case studies that highlight the impact of actual conversion from Non-profit to For-profit hospitals from an industry standpoint. The health care is a challenging and competitive environment, therefore the paper focuses on providing insight on a strategy based on adapting from one business model into another in order to remain competitive.
The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for
I chose to report in the area of general medical and surgical hospital, although it provides explanation on cost and revenue it fails to mention them in detail. The article stated that for the past decade hospitals have decreased in numbers, as well as in patient hospital beds. However, reading the article under organization and structure it reveals cost and revenue. For instances in the late 2000’s, the largest source of income for hospitals came from Medicare and Medicaid services, of 2.24 trillion, in governmental funds they provided 1.04 million or 46.2 percent. Medicaid accounted for 19.2 percent and Medicare, 14.7 percent. Private insurances paid 34.6 percent which would be over 775 billion, finally out-of-pocket expenses accounted for 12 percent, which was equivalent to 268.9 billion. The remaining 7.2 percent came from other sources of revenue.
A comparison will be held against non-profit hospitals and for-profit hospitals in regards to their operating costs focused on uncompensated care and their operating profit margins. The locations and statuses of the hospitals will also be taken into account and explained to add more context and clarity to the true meaning of their dollars. The comparison will be displayed not only in a paragraph format but also in a bar graph visual to accentuate and clarify the either vague or noticeable difference between the hospitals.
The majority of hospitals in the US are private nonprofit hospitals. Community hospitals make up the majority of private nonprofit facilities. These hospitals have an average of 190 inpatient beds. The nonprofit hospitals are exempt from federal, state and local taxes. Nonprofit hospital are owned and operated by hospital districts or nongovernment organization and benefit the community that they serve. They provide public good and do not distribute profits to individuals or stockholders.
Safety net hospitals have played an important role in the United States health care system. They provide a significant amount of care to low-income, uninsured, and vulnerable populations. While treating these types of populations, they are still able to provide high cost services such as trauma and burn care. They often take on additional roles and responsibilities such as the training of medical and nursing students (Coughlin et al., 2014). These hospital systems are well known for their open door policy (Wynn et al., 2002). They will examine and treat all individuals, whether or not they can pay for any of their services. The hospitals are not distinguished from other providers by ownership. Some are publicly owned and operated by local or state governments, while others are non-profit. However, they are distinguished by their commitment to provide access to care for all individuals with limited or no access to health care due to their finical circumstances, insurance status or health condition (What is a Safety Net Hospital, 2015).
Non-Profit hospitals can often assist potential patients to care for the uninsured in their community (Kovner & Knickman, 2008).
“Truth is everybody is going to hurt you: you just gotta find the ones worth suffering for” - Bob Marley. How are your friends? Family? Exes? How do they make you feel?
Utilizing community-based organizations to help those in need not only empowers the patient to live a healthier lifestyle, but will also allow earlier detection of disease and an increase rate of compliance for follow-up care of the patient. This allows for better quality of care and will in turn reduce healthcare cost from unnecessary emergency room visits and readmission rates. Studies also show that increased funding to health centers creates additional economic stimulus by creating new jobs (Whelan, 2010). This will help those in need to monetarily afford the necessary options for treatment.
The role of payers in the health care industry has dramatically increased in the past few years and will continue to do so with the expanding cost of care. Hospitals are often under scrutiny because of the discrepancies found between the actual cost of care and what the insurance will reimburse the organization. Bruce Reuben, the president of the Florida Hospital Association, explains the multifaceted triangle considered by hospitals: “‘There's one party — the hospital who provides the service. There's a second party — the patient, who receives the service. And there's a third party — the insurance, who pays for the service’" (Mack, 2014). The greatest complex part of this triangle is the last which examines the insurance’s payment for service