Not-for-Profit Healthcare Organizations, Research Paper Example

Most of the health care organizations have an organization structure based on the community services, academic medical centers or not-for-profit. In this respect, majority are exempted from taxation based on “Internal Revenue Service regulations (501 (c) (3))”. They therefore have a primary responsibility of providing services to the community through a variety of programs. The funding of the institutions is mostly done through donations whose taxes are the burden of the donors. They also depend on bond, efficient operations and debt instruments.

The health care organizations operating on the basis of profit generation have a goal to generate profits to the owners and shareholders and they are taxable entities.

The not-for-profit healthcare organizations have equal pressures as for-profit healthcare organizations in the provision of the community needs. Patients require special attendance in emergency rooms. Significantly high cost structures are associated with the not-for-profit healthcare organizations in their attempt to deliver high quality services and the only way to achieve success in this endeavor is operating in a way to generate profits. The institutions are usually under the administration of members of the board of trustees or board of directors. For efficient hospital operations, it is important for the not-for-profit healthcare organizations to generate profits. This is the only way that the clients can be given the highest quality services that they deserve. An augmented role in competition and for the entrepreneurs in the course of health care delivery is likely to yield a high profile of effectiveness and also efficiency in the not-for-profit healthcare systems (Bradford, 1986). The positive arguments behind profit generation in the not-for-profit healthcare organizations rests on the value that is attributed to economics benefits and the freedom for free enterprise which is consequential to higher efficiency the system of health care delivery.

Reference

Bradford H. G., (1986). The New Health Care for Profit: Doctors and Hospitals in a Competitive Environment. Washington, D.C.: National Academy Press.