Reply to Melanie on for-profits and not-for-profit healthcare institutions
Reply to Melanie on for-profits and not-for-profit healthcare institutions.
In addition to the thread, you are required to reply to at least 2 other classmates’ threads. Each reply must be 300–400 words. You must include at least 2 citations for each thread, and at least 1 citation for each reply and Biblical Integration Current APA format must be used.American Psychological Association. Publication manual of the American Psychological Association (Current ed.). Washington, DC: Author.
Lee, R. H. (2019). Economics for healthcare managers (4rd ed.). Chicago, IL: AUPHA. ISBN: 9781640550488.
Discussion Board 4
Harrington (2016) notes that a for-profit organization is an organization that has profit remaining after all obligations have been discharged. The profits from the for-profit organization boost the wealth of the organization or its owner. A for-profit organization can be thought of as a business that is owned and exists to produce revenue that surpasses spending. A for-profit organization can be privately or publicly owned by an individual or group (Harrington, 2016). When a for-profit organization is publicly owned stocks can be purchased or sold on the open stock market and has a board of directors who decide on the distribution of profits and satisfaction in a publicly owned for-profit organization. One example of a for-profit organization would be a hospital chain such as Baptist Hospitals.
Not-for-profit organization exists to meet the needs of others and is not owned but rather held in trust and according to Harrington (2016), “there are many hospitals that fit into this tax status” (p. 12). The Internal Revenue Service (IRS) produced two categories for not-for-profit organizations which are 501(c) (6) and 501 (c) (3). Organizations in the 501 (c) (6) category can buy and sell goods and services only “with the intent of benefiting a major interest group” (Harrington, 2016, p. 12). Organizations in the 501 (c) (3) category are mainly exempt from federal taxes and must limit their activities to those deemed for the public interest (Harrington, 2016). When a donation is made to a 501 (c) (3) the organization it can be a tax deduction for the individual making the donation (Harrington, 2016). An example of a not-for-profit organization is St. Jude Children’s Research Hospital that falls into the 501 (c)(3) category.
Wübker & Wuckel (2019) noted that for-profits hospitals are not regarded as hospitals that offer much community benefit making them barred tax exemption while not-for-profit hospitals exist to benefit the community making them eligible for tax exemption. If a for-profit hospital cannot offer positive community benefits the patients cannot receive sufficient care and health professionals cannot provide a high-level quality of care to assist with bettering the health of the community. According to Paul et al. (2019), healthcare costs are increasing which makes enhancing the quality of care while decreasing unnecessary waste more important. For-profit organizations profit from generated revenue which for insurance companies might mean providing expensive, needless tests to produce more revenue. According to Wübker & Wuckel (2019), not-for-profit United States hospitals provide superior quality and access to their community. With community health and well-being being the focal point for health professionals in not-for-profit hospitals better quality and care can be provided to the patients. Insurance companies may have a smaller risk for the expensive, needless tests one might provide to generate more revenue. Ecclesiastes 5:10 says, “Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless” (NIV). For-profit organizations are driven by the increase in money and will continue to be so as there will never be “enough” money to satisfy this type of organization. Money and wealth mean nothing and are not as important as serving the community by focusing on the health and the well-being of the population.
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