Nonprofits vs. For-Profit Healthcare OrganizationsThe debate over whether all healthcare institutions should be nonprofit or for-profit brings to light many complex issues that need to be resolved. What should be examined is whether non-profit hospitals are better than for-profit hospitals and whether there is enough evidence or data to support whether one is better than the other. When we think about a non-profit and for-profit healthcare organization, what will typically happen. Keep in mind, is that the big difference between the two is that, unlike profits, a non-profit will have greater access to large public tax subsidies, it will not be able to distribute profits to the owners or other people who control the organization and will be exempt from corporate taxes. and donations (Pan, 2013, page 675). Non-profit hospitals were established by various charities and typically accept anyone who walks through their doors regardless of their ability to pay for their services. A nonprofit organization receives a tax exemption, and typically, a nonprofit hospital, especially in large urban cities, can be busier at any given time than a for-profit hospital. A nonprofit hospital is governed by the communities it serves. Hospital leaders say all profits earned support their mission to care for all patients, rich and poor, and to be competitive they must pay competitive wages to attract and retain talented doctors and nurses. A nonprofit hospital benefits the community it serves. One of these benefits is charity care, free care provided to the uninsured, or the amount of a bill that is written off due to the patient's inability to pay the bills (Pan, 2013, p. 681). , or investor-owned hospital means making...... middle of paper ......employees and engaging them emotionally to want to be part of the team. Another way that could improve the financial performance of nonprofit hospitals is to control labor costs and develop operational solutions to reduce expenses without decreasing the quality of patient care. Additionally, nonprofit organizations can also improve financial performance by working to improve relationships with physicians and reduce patient length of stay by engaging nurses and physicians to share effective management approaches and techniques (Norwick, 2010, p. 131) . Due to cuts in Medicare and Medicaid that have led to lower reimbursement rates for hospitals and other healthcare organizations. It is essential that not-for-profit organizations continue to streamline services and provide good quality patient care while reducing costs to remain a valued resource in the community.