Medical Organizations Essay Sample

Published: 2019-10-24 22:25:20
Medical Organizations Essay Sample
Categories: Business Medicine
Pages: 3
Wordcount: 694 words
6 min read

Whether not-for-profit community hospitals or large academic medical centers, they are faced with similar business and financial implications. In this case, the major factors to consider are the acceptance of patients, community benefits and monetary payments associated with each of the organization ("Business & Financial Differences between Profit & Nonprofit Hospitals," 2016). It is good to mention that the non-for-profit organizations have a tax exemption, and even more interestingly, they pay their members of staff higher wages/salaries than other organizations. This means that they have more staffing frequencies and ability due to the large numbers of patients they normally accept regardless of the ability of the patients to pay for the services provided. Also, the two organizations offer frequent and extensive programs such as the community benefits; clinical services for low-income members of the community, medical training programs for staff and college students joining medical professions and smoking sensation programs. Lastly, the two organizations have policies and procedures that ensure that all the income earned from their day to day activities remain in the community. That is to say that they retain all the gained income or revenue for the betterment of the organizations may be by the addition of resources and equipment for use in the medical service deliveries or for enhancing the organizations projects such as those aimed towards community benefit services.

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The major differences between the two organizations mentioned above are that the largest academic medical centers offer these programs more often and tend to have better and stable financial sources than the community hospitals ("Business & Financial Differences between Profit & Nonprofit Hospitals," 2016). Further, the community hospitals do not offer community service benefits as occasionally as the largest academic medical centers do. This can be attributed to the fact that most of the major organizations are more financially able than community hospitals.

For-profit organizations, on the other hand, are mainly owned by investors, and this has specific financial impacts on the immediate community. For instance, while the assets of a not-for-profit organization stay and belong to the community, the assets in the for-profit organizations belong only to the investors ("Business & Financial Differences between Profit & Nonprofit Hospitals", 2016). This means that only the investors within the community greatly benefit from the organizations. The community does not experience as much community benefit, and this means that the members of the community seeking medical services within these organizations are normally not offered the services unless they are capable of paying for them fully. This requires mentioning that the nonprofits organizations serve patients of all financial levels since their services are purely meant for the well-being of the community, on the other hand, the for-profit organizations are purely meant to yield financial benefits for the investors and therefore the payment by the patients is paramount. The need of making a profit can also be attributed to the fact that the for-profit organizations are susceptible to paying more tax and revenues to the government than the non-profit organizations are. This can also be viewed as a financial benefit to the government. In a nutshell, the community does not experience any financial benefits from the organizations profits unless they are members of the stockholders (investors) of that organization.

Being an academic facility in the medical field has major financial benefits ranging from the fact that the facilities experience a low staffing cost as they can exploit their medical students as the main members of staff. The centers have a pool of financial sources, including the fees from the medical schools, the returns from the research facilities and the returns from the medical services ("The Plight of Academic Medical Centers", 2016). In this case and considering that most are tax-exempted, the facilities can support most of their projects successfully. In other words, the facilities are financially able to support their projects through the extra funds from the exempted taxes and from the additional sources of income/revenue which lack in typical hospital organizations.


Business & Financial Differences Between Profit & Nonprofit Hospitals. (2016). Retrieved 24 August 2016, from

The Plight of Academic Medical Centers. (2016). Retrieved 24 August 2016, from

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