Essay on "Nonprofit vs. For-Profit Healthcare Organizations"

Essay 2 pages (710 words) Sources: 3

[EXCERPT] . . . .

While many non-profit hospitals indicate that they are interested in altruistic activities as opposed to income, Brickley and Van Horn (2002) found no evidence of that in their study. Because managers in both for-profit and non-profit healthcare organizations must focus on the financial performance of their organizations, there is no reason to believe that the two types of healthcare are actually different from one another in any significant way.

While there will always be varying opinions as to which kind of healthcare organizations are best for society, the evidence does not suggest that there is anything more going on with the two healthcare options than companies that are helping people who are ill. All of the organizations appear to be facing enormous pressure to bring in money, whether they are trying to make a profit or attempting to get some kind of return on their assets (Brickley & Van Horn, 2002). As long as that continues, there will be no real difference between the two types of healthcare organizations, because they are both focused on the bottom line - at least at the top levels of management.

When it comes to how the ill people are treated by the healthcare organizations, however, there is very little supporting evidence that there is a difference in the standard of care. One study indicating such by a small margin does not make an argument that is convincing to the masses. More studies into the issue will be needed in order to determine if for-profit and non-profit healthcare organizations actually differ in any significant way in their standards of care.

References

Brickley, J.A., & Van Horn, R.L. (2002). Managerial incentives in non-profit organizations: Evidence from hospitals. Journal of Law & Economics, 45(227).

Ha, T.T. & Reschovsky, J.D. (2002). Assessments of medical care by enrollees in for-profit and nonprofit health maintenance organizations. The New England Journal of Medicine, 346.

Speckbacher, G. (2003). The economics of performance management in nonprofit organizations. Nonprofit… READ MORE

How to Reference "Nonprofit vs. For-Profit Healthcare Organizations" Essay in a Bibliography

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