Hs542

For Profit vs. Non Profit

Christopher Hamlett

Keller Graduate School of Management

Abstract

The point of this paper is to describe the key differences between Profit/Non Profit Healthcare Organizations and to look at some of the criticisms that both of these organizations have been receiving as well. I also will be discussing what some of these differences mean.

For Profit vs. Non Profit

Similarities and Differences

There have been several discussions as to if For Profit is better than Non Profit Healthcare systems. I would say that one of the great advantages of Non Profit organizations is that they do not have to pay property, sales, or income taxes. The only other thing that separates these two organizations is regulatory rules alone. Both organizations generate revenue through daily operations. For Profit hospitals can generate funds through issuing stocks while Non Profit can issue tax-exempt bonds and accept deductible tax contributions. Other differences that are not really hot on today’s topic is how the employees are valued at these two organizations. Employees that work for Non-Profit organizations feel that they are valued more than working for a Profit organization. This saying to me actually makes sense, if you think about it: Non-Profit organizations are established mainly for the poor which is why this establishment is exempt from taxes. Employees may receive more praise from their boss while in a Profit organization; an employee may not receive as much praise.

Complaints

Some of the general complaints about For Profit Hospital organizations are that they are all about profit and all they care about is appeasing their shareholders (compassionless). I would say that I have never personally experienced this myself, but I will say that if family is in need and they may have the minimal healthcare coverage. I believe that they would be better off a Non-Profit organization rather than a For Profit setting being that you must have some...