|Regardless of whether a health care administration is non-profit or for-profit, the focus remains on the quality of care provided to the patient. In an emergency situation, worrying if someone is insured, under-insured or uninsured is the last the thing on medical staff’s minds. However, when it comes to the differences may come in how the administrations distribute their resources, what treatments offered and their underlying purpose to the patients and the communities they serve.
According to the George Washington University School of Business, It’s important for patients and administrators alike to understand that there is no indication of any difference in the environment, operational efficiency, or standard of care between nonprofit and for-profit hospitals (The George Washington University, n.d.). Being non-exempt, some may challenge that non-profit administrations provide less actual charitable care services. However, approximately 85% of the near 5,000 U.S. hospitals are just that, non-profit, providing uncompensated health care (Roller, 2015). Without being provided this opportunity, some hospitals may not be able to operate, but more importantly, some patients may not be able to afford the care received. The scrutiny the non-profit organizations face continues.
If a charitable organization meets the following qualifications, the IRS determines that hospital to be non-profit:
1. Comply with proscription against excess benefit transactions and the inurement of private benefit,
2. Meet its charitable purpose,
3. Be operated for a legal purpose (Sharamitaro, 2014)
Although, non-profits serve communities with less poverty, high incomes and fewer uninsured patients, in my opinion, non-profits provide more charitable health care services. (The George Washington University, n.d.). These organizations serve their communities, often times with a religious preference, in a uncompensated manner.