Running Head: Not-For-Profit and For-Profit Healthcare Institutions Not-For-Profit And For-Profit Healthcare Institutions 1 Not-For-Profit and For-Profit Healthcare Institutions 2 Economic behaviors of Not-For-Profit Hospitals
The “Not-for-Profit Hospitals” are of 2 kinds: private and public. Public hospitals are
identical to private “Not-for-Profit Hospitals” in a number of characteristics. Together the public
hospitals and private “Not-for-Profit Hospitals” are not giving the taxes as well as together
hospitals have the similar right to attain tax-exempt bonds. Frequently, public hospitals hold a
lesser amount of sovereignty in opposition to their private equivalents, specifically as regards to
employment practices and compensation. Additionally, in opposition to private “not-for-profit
hospitals”, the “public not-for-profit hospitals” are commonly not in a spot to deny the care of
their patients, except they do not hold the apparatus or facilities for caring the patients.[Fra1]
The Private “not-for-profit hospitals” have the benefit of a number of governmentconferred gains, counting exclusion from commercial property and income taxes, to some extent
superior right to use the tax-exempt bond funding, as well as eligibility for the private
offerings. Two-third of entire urban hospitals of United States is “Not-for-Profit Hospitals”.[Jil]
The “Not-for-Profit Hospitals” do not give out “accounting profit” to all equity holders,
although, these hospitals moderately give their accounting profit in the structure of any dividend
to their funding organizations or person or to anyone it authorizes. In predefined standards,
community (moreover, community is to be explained) is described as “equity holder”. In reality,
no policies exist for the “Not-for-Profit Hospitals” to describe their community. The describing
trait of private “Not-for-Profit Hospitals” is that the persons who manage these hospitals do not
hold the privilege to make use of its income. Therefore, private “Not-for-Profit Hospitals” do not
have any owner. Moreover, in current years, renovations from private or public not-for-profit
position have progressively received more authoritarian scrutiny. Private “Not-for-Profit Not-For-Profit and For-Profit Healthcare Institutions 3 Hospitals” do not hold the shareholders. Therefore, any substitute is utilized from private “Notfor-Profit Hospitals” to opt for any board.[Fra1]
Economic behaviors of for-Profit Hospitals
The “Hospitals (For-profits)” are most probable to present moderately money-making
medical services. For-profits hospitals may share out profits of accounting to their shareholders.
The prior aim of for-profit hospitals is to earn the money. For-profit hospitals have progressed
together numerically and in authority from the time when they initially emerged in finishing
fragment of 1960s. Moreover, the share of “for-profit hospitals” has been steady or constant from
copious decades, although “for-profit hospitals” have progressed in authority inside U.S.[Fra1]
In the “for-profit hospitals”, the entire monetary reimbursement for the 2 superior jobs of
executive is considerably high, and the division of compensation or reimbursement as among
bonus and base salary is dissimilar considerably across types of hospitals, the for-profit hospitals
pay relatively and completely superior bonus. The notable thing as regards to “For-Profit”
hospitals is that these hospitals make most use of compensation systems through engaging bigger
conditional components, making available superior rewards and stronger inducement in
opposition to nonprofit hospitals for the target of superior performance. [MJR]
The “for-profit hospitals” hold authorization to take “tax exempt bonds” into appearance
of industrialized income bonds. The “For-profit hospitals” hold a considerable gain in being
capable to lift up equity capital. Amid types of cost, for-profit hospitals have a propensity to
make use of a lesser amount of labor although extra non-labor contributions.
The hospital profits are not similar for the “For-Profit Hospitals”. One hypothesis as regards to
earning the profits through “For-Profit Hospitals” is that these hospitals deal with their case-mix Not-For-Profit and For-Profit Healthcare Institutions 4 extra cautiously in opposition to attempting the case-mix through government and nonprofit
hospitals. For illustration: “For-Profit Hospitals” differentially situate in regions with moderately
well-insured patients. From this notion of making profits, it can be analyzed that entire general
hospitals are not similar in the sorts of health check services that are made available from them,
in spite of ownership. They are just dissimilar in the patient merge. [Lel] Works Cited Not-For-Profit and For-Profit Healthcare Institutions 5 Brewster, L. (n.d.). The Effects of For-Profit Hospitals on the Quantity and Quality of Care
Provided. Retrieved from web.williams.edu:
http://web.williams.edu/Economics/Honors/2011/BrewsterFinalDraft.pdf
Horwitz, J. R. (n.d.). Making Profits And Providing Care: Comparing Nonprofit, For-Profit, And
Government Hospitals. Retrieved from content.healthaffairs.org:
http://content.healthaffairs.org/content/24/3/790.full
Sloan, F. A. (n.d.). Not-For-Profit Ownership and Hospital Behavior. Retrieved from
public.econ.duke.edu:
http://public.econ.duke.edu/~fsloan/156/articles/Sloan_Article.html
Sloan, F. (n.d.). Not-for-profit ownership and hospital behavior. Retrieved from
econpapers.repec.org: http://econpapers.repec.org/bookchap/eeeheachp/1-21.htm
Weisbrod, M. R. (n.d.). Managerial compensation and incentives in for-profit and nonprofit
hospitals. Retrieved from jleo.oxfordjournals.org:
http://jleo.oxfordjournals.org/content/15/3/750.abstract

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