For Profit Healthcare - Is it working? - page 2
Is it right to have FOR PROFIT healthcare? More and more I am starting to really question our system in the U.S. As a registered nurse, I am appalled to realize that around 47 million Americans... Read More
Jan 6, '01When for-profit healthcare companies start putting quotas on admissions,like it's a manufacturing company or something, then something has just got to give. That is as blatant a profit mindset as I've ever seen.
Jan 7, '01There are many variables to consider in the discussion of not-for-profit and for profit health care institutions. One important point, however, is that all health care institutions must operate in the "black" to continue to provide services, i.e.' they all must have revenues on the plus side. Not-for-profits have a line item on the balance sheet called "excess of revenues over expenses" which is another way of saying profit. For-profit institutions, whether publically or privately held must satisfy stockholders. Not-for-profits do not have to pay dividends. Mission statements and goals differ in the two categories of healthcare institutions with for profits generally setting financial goals for stockholders at a high priority. There are many more differences between the two types of institutions, but it is the economics of healthcare that really must be considered in this discussion.
Healthcare does not respond the same way as other market economies do. There are many reasons why basic supply/demand economic rationality fails in healthcare and too long for this board. If you are really interested, check out The Economics of HealthCare by Rosko & Broyles or HealthCare Economics by Feldstein. Tedious material, but does give some good insights. The journal Health Affairs also is a good source for articles. Peter Buerhaus is a nurse economist (now at Vanderbilt) who has written extensively about nursing economics. Check out his articles for information on nurse supply/demand issues.
Jan 8, '01Thanks for the info on articles and journals about the healthcare system. I definitely would like to be more educated about the finer details of our current US system.
Jan 8, '01Calnurse.org has an article at it's web site that states for profit hospitals show nice profits. The system is working for them and there stockholders but not for the rest of us.