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What is the difference between a profit and a not for profit hospital?

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yaga49 | (Level 1) Valedictorian

Posted January 13, 2013 at 12:19 AM via web

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What is the difference between a profit and a not for profit hospital?

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robineve | eNotes Newbie

Posted January 13, 2013 at 1:11 AM (Answer #1)

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The differences between a for-profit and a non-profit hospital are mostly based on the business side of the institution.  However, the differences can affect you and the care you receive.  For example, a for-profit hospital is responsible not only to its patients and staff, but also to its stockholders and owners.  This puts pressure on all levels to create business models that are most profitable for the hospital which can sometimes translate to lower wages and more dissatisfied patients.  However, they can also be very efficient in their service.

Since a non-profit hospital is not governed by stockholders and profits, they tend to offer higher wages (no board members to pay) which leads to more satisfied employees and patients.  Non-profits are also more likely to treat anyone no matter their ability to pay.  This is because they are allowed tax exemptions and therefore are able to concentrate on providing needed medical services. 

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