For profit vs. not for profit organizations
Melinda Colp
AIU Online
Healthcare Administration
HCM630-1203D-01
Professor Michael Schmitt
September 16, 2012

Non-Profit healthcare organization vs. for-profit healthcare organization “Hospitals can be non-profit, for-profit, and government-owned and/or operated” (Baker & Baker, 2006). There are different terms for each classification in how to report and handle the finances but the basics are the same for any type of business. Business finances require the following basic fundamentals: creating “budgets, understanding capital expenditure, loan acquisition, and financial fees” (Baker & Baker, 2006). Government owned and operated hospitals offer unprofitable services; which
LRMC emergency department has approximately 150,000 visits on average each year and is known for being the busiest single site emergency room in the state of Florida. The emergency room is “considered a state-designated Level II Trauma Center, is equipped with all the necessary state-of-the-art, life saving equipment; a dedicated chest pain management staff to expedite cardiac cases; and a 10-bed pediatric emergency center with tools specific to a child’s needs” (LRMC, 2012). The definition for-profit healthcare provider is “for profit” only businesses. Shareholders receive profits from the business. For-Profit healthcare facilities have grown extensively since the 1980’s. National hospital chains, health plans, nursing homes, and local dialysis centers may be part of the for-profit hospital (ehow, n.d.). The owners and/or stockholders are the recipients of for-profit healthcare organizations; which their staff is legally, ethically, and accountable to do well for the benefit of these owners. As a consequence, for-profit healthcare performance can be measured most simply by profitability and return on equity for shareholders and not necessarily patient quality driven. For instance, for-profit hospitals are very calculated as to where they will emerge into a state and community. They decide on what type of services will be offered or stopped by watching the profitability of maximizing