Healthcare: Profit Status, Research Paper Example

Does profit status (for-profit vs non-profit) impact desired health outcomes of patients? Why or why not?

Leland Brewster (2009) using the theory of hospital behavior explains that non-profit hospitals could be listed as such, but when their functions are evaluated simply operate as traditional for-profit maximizing institutions with an appearance as charitable organizations implied by their ownership status (Brewster, 2009). As such, in responding to whether profit status impact desired health outcomes of patients and giving reasons related to why or why not my assumption is that the profit status does impact health outcomes of patients.

For example, for profit hospitals can choose to treat certain medical conditions due to the profitability, through then process of cream skimming. More importantly, they can also withhold certain procedures due to the type of insurance coverage patients have. Alternatively, a non-profit health care facility will, extend services since they are not looking to maximize coverage. There is evidence to show that for-profit hospitals cream skim more than non-profit ones. Depending on the type adopted patient health outcomes are severely affected (Cutler, 2000).

CDC figures show where non-profit hospitals expenditures may appear more than for profit. However, the argument is that more expenditure does not mean better health outcomes. In fact studies reveal that many high-expenditure regions within the United States of America have worse outcomes than similar regions with less Medicare expenditures. Actually,analysts have predicted that these organizations have arrived ‘flat of the curve” whereby each additional dollar of healthcare spent generates just a marginal increase in health outcomes (CDC, 2010).

References

Brewster, L. (2009). The Effects of For-Profit Hospitals on the Quantity and Quality of Care Provided. Retrieved on July, 25th 2013 from http://web.williams.edu/Economics/Honors/2011/BrewsterFinalDraft.pdf CDC. (2010). Deaths: Final data for 2007. National Vital Statistics Reports, 58 (19), 1-136.

Cutler, D. M. (Ed.). (2000). The changing hospital industry comparing not-for-profit and for profit institutions. Chicago: University of Chicago Press