Non-profit and for-profit hospitals together form the backbone of the healthcare industry. Both types of hospitals lie on the same spectrum of quality. In other words, the best and the worst hospitals are not defined based on whether they are non-profit or for-profit. Both classes contain hospitals of each type. But there are also several differences in how non-profit and for-profit hospitals are managed and whom they serve.
Non-Profit Administration Duties and Roles
Non-profit Hospitals, as the name suggests are primarily concerned with providing health care to the local community, without focusing on making money and profits from the venture. Recognizing this, the government and IRS policies exempt non-profit …show more content…
For-profit hospitals offer a wider range of services and facilities, including the expensive departments and services such as high-level trauma. One can generally also find more expensive drugs being prescribed at for-profit hospitals, as opposed to non-profit hospitals that tend to prescribe more generic drugs.
Differences Between Non-Profit and Profit Hospital Administration
Non-profit hospitals are funded by the government, donations and other similar sources. They are exempted from taxes provided they offer a particular percentage of their services without compensation. On the other hand, for-profit hospitals are funded by the patients’ fees and by the investments the shareholders make.
Because of this, the non-profit hospitals are generally given a free hand in the day-to-day management of the hospital, as long as they are fulfilling the non-compensation criteria and are providing services that are generally agreeable for their benefactors. This ensures the services are far more patient-centric. Whereas, for-profit hospitals have to uphold the shareholders’ interests while maintaining a handsome profit. This results in a stricter administration. This usually implies that the services offered are