Health Care Organizations For-Profit Health Care Organizations

Health Care Organizations
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Health Care Organizations
For-Profit Health Care Organizations
These institutions are profit-driven in that their boards possess a business-driven mode of operation and culture. This is mainly due to their responsibility to their stakeholders who have vested interests in the institution (Warren-Jones, 2017). Therefore, decisions must be in the best interests of the shareholders to ensure that the institution has profitability. This, however, poses a problem since shareholders may not agree with fully agree or be in tandem with the community. It may lead to the withdrawal of such services that may not be deemed profitable for the organization without consideration for community needs. Furthermore, these institutions do not limit their investment choices and can raise enough capital whenever required (Warren-Jones, 2017). This provides these health care institutions with the ability to pour investments into improving their services, upgrading their machinery and technology, and improving their systems. This increases their effectiveness and efficiency in providing adequate services to satisfy shareholders, patients and the general public. However, being for profit, they are required to pay both income and property tax hence cutting into their overall profits. Consequently, the operation of for-profit health care organizations requires discipline since financial performance plays an essential role.
Non-Profit Health Care Organizations
These institutions are service-driven, hence their main goal is to provide services to those in need whenever required. These organizations do not have any direct avenues for raising capital for their hospitals. Hence, they may have problems accessing high-quality ICT systems, expensive medical equipment, and the ability to upgrade their facilities (Verulava, 2018). Consequently, such institutions rely on funding from donors, well-wishers and the general public to cover their running costs. Non-profit health care organizations ar...