What are the differences between profit and nonprofit hospitals?

Realistic differences between for-profit and not-for-profit hospitals?

• I'm writing a college paper and am having a hard time finding published studies on differences between for-profit and not-for-profit hospitals in the respect of staffing ratios ...show more

• Answer:

  This is not an authoritative answer, but I suspect that for the most part, you cannot make the comparisons you want. I think you will find for profit hospitals that vary greatly in the areas you want to compare, and also non-profits that also have the same variations. There are for profit hospitals that exhibit the greatest care for patients, are run efficiently, keep costs down and have staffs comparable to non-profits that have the same characteristics. There are also both for profit and non-profit that are just the opposite. The primary difference is in the manner of ownership. For profit hospitals are corporations owned by shareholders. The hospital may distribute part of its income to the shareholders as dividends, and they pay taxes on their income. Not-for-profit hospitals do not have owners. They still try to earn income, but they do not distribute it. They may qualify as charitable organizations that do not pay income taxes. To that extent, they may be able to devote more money and care to patients, but that is not a certainty.