In: Economics
What are the major risks associated with for-profit hospitals for the following: CEO: PATIENT: PAYER: SOCIETY:
Solution
The for-profit and not-for-profit hospitals differ from each other in many aspects.Some of the aspects are as follows:
1.The for-profit hospitals are primarily located in the prime locations of the habitations.This is to ensure increased reach to the patients and also for gaining proper advantage in terms of easy and cost-effective logistics etc.,Whereas the not-for-profit hospitals are located in the wherever they would receive sufficient place from the donors which mostly is not in the prime location
2.The for-profit hospitals mostly focus on providing those kind of services that require huge investment to build the facilities and also they deliver huge margin in profits like heart care,critical care,etc.,Whereas the not-for-profit areas of focus is vice-versa.
3.Quality of service is better in for-profit hospitals than in not-for-profit hospitals.In other words,we can say that in not-for-profit ones,the focus is on treating more number of patients possible with the limited budget they have rather than providing comfortable / luxurious treatment to every patient.
4.Percentage of uncompensated service as a percentage of their total service is lesser in for-profit hospitals when compared to non-profit hospitals.
The major risks associated with for -profit hospitals
CEO :Since the for-profit hospitals are answerable for their investors for the returns they generate,the CEO may fail to balance his vision of providing health services at affordable prices and get aligned /deviated to generate maximum returns to the shareholders / investors.
Patient : The patients eventhough get a better / superior service
Payer : The prices that are charged in the for-profit hospitals are exhorbitantly high in most of the cases
Society : The for-profit hospitals make the cost of receiving medical service unaffordable to the majority of the society.They ultimately lead to increase in medical cost leading to rise in the medical insurance premiums in the society.
Hope this answer helps!! Please give a "Thumbsup" rating for this this solution !!