For Profit And Non Profit Organization

1. Describe the differences amongst nonprofit and for-profit hospitals. LITERATURE REVIEW economic theory states that FP hospitals will operate more than efficiently neglectful to the profit motive while NP hospitals will tempt higher quality of care. Many studies put one crosswise break downd this theory. Some search suggests that the FP rule of self-command structure achieves greater productive efficiency than the NP form. Herzlinger and Krasker (1987) compare the be and returns between six FP hospital chains and eight NP chains. Their grow out supports the theory that FP hospitals chip in better results for hostelry by being more efficient, cast their earnings in renewing equipment, and offer a broader arena of services to patients. Cutler and Horwitz (2000) examine the conversion of NP hospitals to FP status and regard that FP hospitals can stretch cost and provide capital or relieve debt impression without reducing quality or acerb back on access to the poor when the conversion takes place. Their subscribe indicates that quality is not compromised in an FP setting. Kessler and McClellan (2002) analyze data on medical checkup expenditures and wellness outcomes of Medicare beneficiaries for heart attacks and acknowledge that the FP ownership form has important benefits for medical productivity.

On the other hand, other studies suck up found NP hospitals to be an equally or more efficient ownership form. Duggan (2000) reviews the percentages and changes of Medicaid and uninsured patients in different ownership forms over some(prenominal) years. He fin ds NP hospitals have costs and/or qualities ! convertible to that of FPs. Duggan rejects the theory that NPs are less antiphonary to financial incentives than FPs. In addition, Silverman et al. (1999) find that FP hospitals have higher Medicare costs than NPs. Woolhandler and Himmelstein (1997) find that FP hospitals have higher administrative costs than NPs. In another study that looks at a hospitals conversion from NP to FP status, Picone, Chou and Sloan, (2002) find that NP...If you want to get a in full essay, come in it on our website: OrderCustomPaper.com

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