- May 4, 2020
Health Care Economics
HealthCare Economics Abstract
For-profithospitals are institutions offering healthcare services with anobjective of making profits. These facilities are owned byindividuals or by a group of investors, and they include the bigbusinesses that run various hospitals, nursing homes, and schools.The rich in the society prefer the for-profit hospitals as theyprovide the best medical care, though at higher prices as compared tonon-profit hospitals.
Alternativesto "Profit Maximization" Motive in the Private For-ProfitHospital Industry
For-profithealth care institutions have various positive aspects. They providenew paths for innovation, increased responsiveness to the desires ofphysicians and patients, and new approaches to management. Somepeople, however, see for-profit health care organizations from anegative perspective. They are presumed to be antithetical, as athreat to the ideals of the healthcare profession, and at adisadvantage to people who cannot afford to pay for the services(Gray, 2016).
For-profithealth care organizations ensure that the patients get the besthealthcare services to maximize their profits. The care providers’primary concern is to offer satisfactory services as opposed to thethought of many that their sole motive is profit maximization. Theseorganizations always strive for short period profit maximization.Sometimes they offer free services to all people, such as eye-checkup and conduct free cancer screenings as a way to maximize theirprofits (Gray, 2016).
Inrecent times, the not-for-profit health care organizations havedeveloped sections in their institutions that are meant to generateprofits. Both not-for-profit and for-profit organizations havealternative motives for their operation, but both incur operationcosts. Engaging in for-profit activities helps pay for runningexpenses.
Gray,B. H. (2016). For-profitenterprise in health care.Washington DC: National Academy Press.