Shikia Black-Neil 6:26pmSep 12 at 6:26pm Healthcare organizations are

Shikia Black-Neil
6:26pmSep 12 at 6:26pm
Healthcare organizations are crucial to the well-being of an individual and a community. Healthcare organizations are multifaceted and include a variety of sectors that work together to deliver healthcare services that are safe, effective, and high-quality treatment and promote and improve medical science and research. The complexity of a healthcare organization and its mission and goals has led to different forms and structures. Healthcare organizations that are for-profit and non-profit differ in their characteristics, missions, goals, and operational strategies which can have both advantages and disadvantages. In the United States hospitals that are non-profit make up about 60% of the total number of hospitals (Cooley, 2021). Also, a significant portion of the healthcare infrastructure is made up of for-profit healthcare institutions (Jamil, 2021). Sustainable practices should be prioritized by both organizations to boost the healthcare sector in ways of innovations, efficiency, and competitiveness.
For-profit and non-profit healthcare organizations both play a crucial role within the healthcare sector. Both organizations differ in a number of ways in terms of their mission and goals, financial and organizational structure, and their operational priorities. The mission and goal of a for-profit healthcare organization is financially motivated. The goal is to generate revenue for owners and stakeholders. Additionally, healthcare services are its mission, and a top priority is profitability. The mission and purpose of a non-profit healthcare organization is to enhance and provide healthcare services. Services are offered to individuals and those who are less fortunate and disadvantaged to enhance their well-being and the community. A non-profit healthcare organization is dedicated to patient care in the community and has a mission-driven approach to overall health, not profitability. The financial structure of a for-profit healthcare organization is liable to corporate income tax which affects their net profit. A non-profit healthcare organization benefits from tax exemption status, which eliminates both federal and state income tax. Cooley (2021) wrote non-profit are granted 501 (c) (3) status by the Internal Revenue Service (IRS) which entitles the organization to an exemption from local, state, and federal taxes, and this exemption is estimated to be worth $24.6 billion annually. The non-profit healthcare organization must be dedicated to its goal of advancing the well-being of an individual and the community rather than having a financial motive of profitability. A for-profit healthcare organization has shareholders, investors, and individuals who own aspects of the organization. These individuals are paid a dividend based on revenue and profit. Investment in the healthcare industry has been shown to be beneficial from an investor’s point of view due to the potential for significant profit that is associated with aspects of the market and patterns for healthcare services (Jamil, 2021). A non-profit healthcare organization is often owned by a board of directors or trustees and earnings are not transferred to stakeholders. All revenues that are gained are put back into the organization to help meet its goals, missions, and objectives.
Despite the differences between a healthcare organization that is for-profit and a non-profit both also share similarities. Both healthcare organizations put patient care and safety as a priority. Both work to improve patient outcomes, identify diagnoses and treatments, and deliver safe and effective medical care and services. Educated and qualified healthcare professionals are employed to deliver care to patients and the community. They adhere to the code of conduct and medical ethics that is placed on patient confidentiality, consent, and standard of care that is in the best interest of their patients. Lee (2019) wrote that many non-profit healthcare organizations behave like for-profit organizations to maximize profit. The author also stated businesses whose concern is non-profit must prioritize the balance of finance to maximize profit and meet other objectives. Both healthcare organizations are based on the objectives of the organization, individuals, and society to achieve healthcare service and delivery of care to produce financial sustainability and ensure social accountability and responsibilities are met.
The Bible promotes and emphasizes the importance of placing priority on helping others. Incorporating the mission of providing service to others can be incorporated in both for-profit and non-profit healthcare organizations. A scriipture from the Bible came to mind “Let nothing be done through strife or vainglory; but in lowliness of mind let each esteem other better than themselves. Look not every man on his own things, but every man also on the things of others” (King James Version, 2008, Phil. 2:3-4). An organization that implements these practices whether for-profit or nonprofit differs based on their objectives, missions, and goals. The Bible encourages and promotes the best interests and well-being of others and an organization can incorporate the word of the Lord to ensure individual needs are met.

References
Cooley, A. (2021). Accountability in non-profit health care organisations: Towards building online practices. Voluntary Sector Review, 12(2), 257-276. https://doi.org/10.1332/204080520X16062967176882Links to an external site.
Jamil, S. B. (2021). The dilemma of modern medicine in the united states. Diversity and Equality in Health and Care, 18(7)https://doi.org/10.36648/2049-5471.21.18.250Links to an external site.
Lee, R. H. (2019). Economics for healthcare managers (4th ed.). Health Administration Press.