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Danielle Swartzhaugh

1:45 PM

For profit and non profit healthcare systems are very similar in the fact that they both work with a medical team and other health professionals to provide care to patients. According to an article I found there are 5 primary differences. Tax status is one of the biggest differences which is paid to state government with for-profit organizations. Non-profit organizations get tax exemptions and tax free charitable donations. Another difference is the operations, for-profit healthcare isn't limited on services provided and also have better financial performance equaling better returns on investments. For-profits also have to meet financial goals, where non-profit companies are funded by charitable donations and do not have to abide by financials. Non-Profit also uses the market as power to raise prices.

There has been an increase in merger's recently between non-profit and for-profit organizations which the Federal Trade Commission has supervision over. They look at the local concentration of each organization and can fight the merger if deemed necessary. One push for the merger is so that non-profit organizations readily have capital available to do infrastructure updates and increase billing prices.

References

Rabbani, M. (2021). Non-profit hospital mergers: the effect on healthcare costs and utilization. International Journal of Health Economics and Management. https://doi.org/10.1007/s10754-021-09303-8

Understanding The Basics Of Non-profit Vs For-Profit Health Care Services. (2018, July 5). Instablogs.com. https://link.gale.com/apps/doc/A545450180/ITOF?u=uphoenix&sid=ebsco&xid=f9195ed5