The critical issue in the debate over the merits of the for-profit hospital structure is whether...

The critical issue in the debate over the merits of the for-profit hospital structure is whether the profit motive has a negative impact on quality of care and access of the poor and uninsured. Is there a significant difference in quality and access between for-profit and not-for-profit hospitals? What is the empirical evidence?

Expert Solution

For-profit hospitals are those hospitals whose chief objective isn't great that is social but maximizing financial profit. These hospitals are in which the investor is currently focusing on maximum yield. On the flip side, non-profit hospitals work on charities because their intention is to provide maximum aid in cost to folks who cannot afford, with no objective of profit creation.

It is believed that for-profit hospitals don't provide excellent treatment to uninsured and poor or occasionally availability to service isn't provided. However there's proof of the two situations at which for-profit organizations are currently providing solutions compared to non- profit organizations and no research has proved the gap in quality is because of their financial construction.

It's we understood that profit organizations work for profit although non-profit hospitals work for benefit of the society. Non-profit organizations get tax exemption and government funding is received by them . For-profit organizations, to optimize profit, create till revenue is equal to marginal cost while non-profit organizations work until the time earnings is higher than profit to make certain they can conduct hospital surgeries.

Rahul Sunny answered 2 years ago

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