Nonprofit vs. For-Profit Healthcare Organizations
Healthcare organizations, both profit and non-profit, are designed to help people in need. However, sometimes that goal fails because of the notions of performance that are used in the private sector (i.e. for-profit). These are not the same as the notions used in the public sector (i.e. nonprofit) (Speckbacher, 2003). Private sector health care is based much more closely on economic theory than public sector health care, and that greatly affects how patients are treated, even though many in the industry will insist that there is no change in how patients are received in either type of organization (Speckbacher, 2003). In order to understand the difference between the two kinds of healthcare organizations, one must consider the way they are operated and maintained.
For-profit healthcare is part of the private sector, and is designed for making money as well as for helping patients. Non-profit healthcare still makes money, but it is not set up to make a profit as a private sector business. Instead, it belongs to the public sector, like governmental entities,...
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