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The Business of
Health Care Report What's the difference between for-profit and not-for-profit health care? There are almost 5,000 hospitals in the United States - 85 percent of which are not-for-profit like the hospitals of Texas Health Resources: Presbyterian, Harris Methodist and Arlington Memorial. Typically, the not-for-profit and for-profit hospital sectors provide similar services, compete for the same patients, and get paid by the same sources. However, they differ significantly in many other ways. For-profit organizations are responsible to their shareholders for a return on investment. Not-for-profit hospitals are accountable to patients, employers and insurers who pay for medical care, and as assets of the communities in which they operate. Not-for-profit organizations are required to contribute a portion of their earnings to care for the underserved and demonstrate health improvement in their communities. Some examples include providing care for the homeless and those without funds to pay, conducting childhood-immunization and asthma prevention programs, and reaching out through nursing programs to schools and the home-bound. Because not-for profit hospitals are considered assets of the communities they serve, they reinvest profits in new equipment, more medical specialties and new clinical programs that meet identified community needs. To make sure the communities' interests are protected, local voluntary boards of trustees oversee strategic planning and business development opportunities. Simultaneously, and in conjunction with the medical staff, trustees monitor quality-of-care reports, patient satisfaction results and outreach efforts to those communities. For Texas Health Resources, these trustees are keen business minds who donate their time without compensation to improve their hometowns. Who benefits from not-for-profit health care being alive and well in your community? You do. If you have comments on health care or suggestions for topics to be addressed on this program, e-mail me at DouglasHawthorne@TexasHealth.org. Stay tuned to our weekly Business of Health Care reports here on TexasHealth.org and on News Radio 1080 KRLD. Source: New England Journal of Medicine; April, 1996; American Medical Association; Mayo Clinic Doug Hawthorne - DougHawthorne@TexasHealth.org ©
2001 Texas Health Resources |
