Question

• Discuss some of the differences between not-for-profit and proprietary hospitals, including the types of patients who utilize them, hospital financing, financial viability, and anticipated future direction.

Answer 1

NON FOR PROFIT:

• Are not business driven,
• non profit hospital don't pay taxes.
• non profit hospital don't have avenues for capital.
• no financial pressure

PROPRIETARY HOSPITALS:

• Are business driven
• pay property and income taxes
• profit hospitals have avenues for raising capitals that non-profits don't have.
• financial pressure

not profit hospitals are utilised by labour unions, consumer groups , lower income population whereas, proprietary hospitals are used by high economic class people, uninsured patients and people with less poverty.

non profit hospitals are seen as charities by IRS . In keeping with their charitable purpose and community focus, non-profit hospitals are often affiliated with a particular religious denomination.

proprietary hospitals are owned either by investors or the shareholders of a publicly traded company.

while for profit hospitals have traditionally been located in southern states, the economic collapse catalysed the acquisition of non profit hospitals by for profit companies. some non-profit hospitals are finding ways to improve their finances like joint venture.