: Profit vs Non-Profit
Paper details:
Inherent in the discussion of for-profit and not-for-profit organizations is the fact that each of these types of organizations is
represented by its own advocacy organization. The American Hospital Association represents the not-for-profit sector. while the
Federation of American Hospitals (FAH) represents the for-profit sector. The questions for you to ponder as you prepare for this
discussion board activity are:
Why would it be necessary for there to be two different advocacy organizations?
What kinds of issues would be different enough in these two segments of the industry for us (the industry) to incur the expense
and the effort to have separate advocacy organizations?
Essentially. what you are seeking to understand is: Identify the issues that are more pertinent to for-profit vs not-for-profit
healthcare organizations-
In which segment of the industry does it typically occur?
Would it be appropriate to ask financial investors in for-profit healthcare organizations to incur the higher costs of teaching
physicians?
It has been said that “no one should make a profit from the suffering of others.” implying that there is a moral or ethical issue that
is inherent in the practice of medicine on a for-profit basis. What do you think? As you consider this question. ponder the
following facts:

In 2010. according to Forbes magazine. the median profit margin of all US

hospitals >200 beds was -7%. Compare that margin to the most profitable

hospital in the US. a facility in Alabama that is owned and operated by

Community Health Systems. whose profit margin is 53% (also according to

Forbes magazine).
How does one facility (or any facility) generate that much profit when the national median profit margin is actually in the red?