The Difference in Cost and Quality of Care between Profit and not for Profit Hospitals - Research Paper Example

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In the recent years, the competition between for profit and not for profit hospitals to solicit and attract patients has immensely intensified. This has directly augmented the interest in the academic and business circles regarding the competitive performance and efficiency of for profit and not for profit hospitals. …
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The Difference in Cost and Quality of Care between Profit and not for Profit Hospitals
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Download file to see previous pages In the last two decades, the healthcare in the United States of American has undergone immense structural changes leading to a visible proliferation of both for profit and not for profit healthcare institutions. At the same time, the other big development has been a rise of the concern for the achievement of ethical competency in the functioning and working of profit and not for profit healthcare institutions and organizations (Walshe & Smith, 2006, p. 85). This overall alteration in the business environment in the country has lead to an impetus for minimal reliance on the charity and philanthropic sources of capital and a preference for competency and competition in the long term financial working of the healthcare institutions and organizations. It goes without saying that it will be immensely revealing to study the impact of these developments in the cost and quality of care of for profit and not for profit hospitals. However, this endeavor, by its very nature necessities a pragmatic insight into the American healthcare system and the salient features and priorities of for profit and not for profit hospitals.
American Healthcare System
In the current times, the healthcare system in America is facing many problems and issues. America spends more money per person in healthcare than perhaps any other nation in the world. (Sultz & Young, 2010, p. 29). A large percentage of the national GDP in the United States of America is spent on healthcare because of the high costs involved (Sultz & Young, 2010, p. 29). The public healthcare expenditure of the United States of America stands to be the third highest in the world owing to the glaringly high cost of medical care in the country (Sultz & Young, 2010). The present and intended reforms in the healthcare system revolve around varied grave issues like the right to healthcare, quality of medical care, access to healthcare, and the efficiency and costs incurred by profit and not for profit hospitals. Though the Americans spend so much on healthcare, yet it is sad to acknowledge that America tends to lag behind many nations in the area of life expectancy and infant mortality (Sultz & Young, 2010, p. 4, 5). So the common citizens, institutions, organizations and the interested groups are getting wary about the fact that as to whether the system is delivering the value for money or not. It is utterly difficult to delve on the difference in cost and quality of care between profit and not for profit hospitals without taking into consideration the framework within which they operate and the targets they are primarily affiliated to. For Profit Hospitals-Salient Features In the United States, for profit hospitals are also known as the investor owned hospitals. They usually comprise of chains of investor owned hospitals that have infiltrated the healthcare system in the United States in the latter half of the 20th century. Realistically speaking, in contrast to the more traditional not for profit hospitals, for profit hospitals intend to accrue profits from the services provided by them (Cutler, 2000, p. 23). Those people, groups and corporate bodies who support for profit hospi ...Download file to see next pagesRead More
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