Grade Recieved - "A"
Although both for-profit and not-for-profit hospitals provide a certain amount of charitable services to the public, there is debate as to which provides a higher level of charitable services to its respective community.
Which type of hospital do you feel provides more charitable health care services, and why?
In your answer, be sure to provide at least 2–3 reasons for your choice, using properly cited references.
In this discussion I will be discussing who I feel is more charitable between for-profit and not-for-profit hospitals and why. Based on the research that was conducted, it turns out that for-profit hospitals provide more charity than ...view middle of the document...
An issue that is always a concern is the costs and what hospitals are required to do in order to carry on.
According to Jeff Bounds of the Dallas Business Journal, the expenses that are acquired in the midst of our nation’s not-for-profit hospitals, only about 12% go into their respective communities for assisted services which include education and charity care. This information was collected from records of over 800 hospitals that provided regular charitable activities to their community, which amounted to an average of about 11 to 12% of expenses. While obtaining big tax breaks and providing minimal charity care, about half of the hospitals spent less than 3% of expenses on charity care.
Over the next 10 years, 2% of Medicare reimbursement cuts have been mandated which presents a huge threat to not-for-profit hospitals due to the federal sequestration. Many communities also feel that there are numerous not-for-profit organizations that need to conduct more charitable work due to the generous tax breaks they are receiving based on their level of charity care.
When it comes to for-profit hospitals, there are many cases in which they spend more money on for charitable activities and care for the underprivileged than no-for-profit hospitals. There is Georgia Alliance of Community Hospitals representative of, which is an alliance for not-for-profit healthcare facilities alleges that not-for-profit healthcare facilities doing fact provide added assistance that is worth far more than the exemptions they are entitled to. He further explains that this is due to the value of their research and also their operating services that are unprofitable.
As a final point, the response may not be as clear...