Analyzing the merits of For-profit hospitals
I believe that for-profit hospital is better on average then nonprofit hospitals. This is a sticky issue, and many disagree, those who oppose this sentiment hold the opinion that not for profit hospitals do a better service to the community. They base this assertion on the opinion that not for profit hospitals are not driven by avarice and thus provide honest treatment to the patients (Atlas, 2011).
I hold the position that for-profit hospitals are better suited to provide better healthcare and improve medical standards across the country. For-profit hospitals operate like commercial organizations; they sell their services to the consumer. In doing this, they operate in a market economy and are liable to the laws of economics (Cowen, Tyler, Alex, 2013). This may seem like a negative thing but in reality, it gives for-profit hospitals much greater liberty in the way that they operate.
One of the merits of the for-profit hospital is that it is much easier for them to raise capital. Because their main motive is to earn a return on investment by providing treatment and diagnosis services to patients, the hospitals can convince investors to invest in them in exchange for a share of the profits. This ensures that for-profit hospitals always have better facilities. Because for-profit hospitals act as commercial entities, they compete with other hospitals to provide services to patients. Competition is very beneficial to the consumer. Competing organizations tend to lower the cost of a good or service (Cowen, Tyler, Alex, 2013). More so, in a bid to attract more patients, the hospitals will improve their facilities and the services that they offer. Leading to better quality services that are provided to the patient at a lower cost.
Cowen, Tyler, Alex (2013) “Modern Principles: Microeconomics (2nd ed.)” New York: Worth Publishers
Atlas (2011) “In excellent health: setting the record straight on America’s health care and charting a path for future reform” Stanford, California: Hoover Institution Press, Stanford University