Question

Use the quality/quantity maximization model to explain why studies have shown the following: A) Not-for-profit psychiatric hospitals are no more efficient than their for-profit counterparts after controlling for for quality. B) Not-for-profit hospitals provide a higher quality of care as measured by the number of violations and complaints received.

Answer 1

A) their are 3 kinds of hospitals when they are classified according to their economic and financial status they are i) non-profit making ii) profit making or private aided hospitals iii) government hospitals. The not for profit hospitals operate under different legal terms for example they recieve different subsidies and exemption from the government they treat their patients with a mix of needs that is providing with the initial consultation and treatment which is mostly due to contracts signed with insurance or some government organisations but they dont have advanced treatment facilities and highly trained staff and dont upgrade themselfs according to the changing facilities and techonology thats why not for profit psychiatric hospitals are no more efficient then their profit counterpart after controlling for quality

B) not for profit hospitals provide a higher quality of care as measured by number of violations and complaints recieved because in for profit hospitals the patients pays for everything else as per market standards and are charged accordingly for a single hint of negligence patients file complaint but in not for profit hospitals their is a difference in staffing they have a large number of staffs specialised in a different fields and are deployed is specified sectors of operational area.

While in for profit hospitals they knowingly reduce the number of staffs to save the working capital of the organisation and mostly hire un trained and low salaried employees to save cost. Thats why the number of complaints in different operational areas increases due to lack of proper knowledge skill and experience.