Richard Nixon was responsible for much of the current system's origins. If you don't believe me watch Frost/Nixon
Oh sure, get all your information from a MOVIE. That's real smart.
Health care has been a "for-profit" enterprise since its very inception. The first witch doctors that shook sticks and attached leeches got "paid" for their services. Even in tribal economies with no money, those who devoted their time to healing people were given food and shelter by the tribe, though they didn't help hunt the mammoth or build the homes. People who heal other people do not do so for free. They expect to be compensated. And they expect to be compensated at a rate that exceeds the cost of providing health care, the very definition of profit. To be fair, most health care providers have a genuine concern for their patients, but they certainly are not altruistic to the point that they would provide their services for free, or at an economic loss.
The fact is, health care "for profit" is, by far, the best alternative. The large incomes that doctors receive attract the best and brightest students to the profession. If doctors didn't get paid any more than trash collectors, then their average IQ wouldn't be any higher than that of trash collectors either.
And when it comes to drug companies, I know a lot of people are upset about the high cost of prescription drugs. But many people simply don't understand how much it costs to bring a prescription drug to market. There are millions of dollars in research and development. Then there are millions more in costs for mandatory testing by the FDA. And much of this money goes for naught because ideas don't pan out, either at the R&D stage or the FDA testing. So the cost of all the "failed" drugs has to be absorbed by the few that make it all the way through. Now, if that drug is for a common ailment that a lot of people suffer, then that's alright, because drug companies can spread that fixed R&D and FDA cost over a large number of prescriptions. But if the ailment is rare, they won't sell much of that drug, so to make a profit, they have to charge a very high price.
But why is it necessary for drug companies to make a profit? Well, if they didn't, they couldn't stay in business for very long, could they? And the more profit they make, the better they are able to attract the most brilliant minds into the field, similar to the way high incomes attract the best doctors.
10%
In healthcare, private organizations typically aim for profit, operating as for-profit entities that seek to generate revenue through services and treatments. Public healthcare systems, funded by government resources, prioritize access and affordability over profit, often operating at a loss. Non-profit healthcare organizations focus on community service and patient care without the goal of making a profit, relying on donations, grants, and sometimes government funding to sustain operations. Overall, for-profit healthcare is driven by financial gain, while public and non-profit sectors emphasize service and accessibility.
They are are a healthcare corporation who own a large number of Catholic Non-profit hospitals nationwide.
The primary goal of most not-for-profit healthcare corporations is to provide quality healthcare services to the community while ensuring accessibility and affordability for all patients. Unlike for-profit entities, their focus is on improving health outcomes rather than generating profit, often reinvesting surplus revenue back into the organization to enhance services, facilities, and community health initiatives. This mission-driven approach aims to address public health needs and promote overall community well-being.
The Healthcare Commission was a non-profit program that was started in the United Kingdom. It was created to improve on the healthcare system, but was abolished in 2009.
The Institute for Healthcare Improvement is a non-profit organisation tasked with improving healthcare worldwide. They look into cultivating concepts to improve patient care and help promote them.
It is often labeled as not-for-profit. This is a somewhat loose definition of not-for-profit because JCAHO profits both on its healthcare-related activities and on investments. The profit on healthcare activities is rather small compared to the total value of JCAHO. The return on JCAHO's investments was 5 times as high as its healthcare profits in 2007 ($5 million versus $1 million), while in 2008 JCAHO actually lost $27 million in the market. Total value of JCAHO is about $150 million, over half of which is invested. About half its investments are in the stock market.My source:http://www.jointcommission.org/NR/rdonlyres/05E0308B-E5FF-4CF7-AD63-39C038E85ACA/0/08_financial.pdfMy own opinion: An organization that plays the market this much is not really not-for-profit, nor is it really a healthcare organization. It is an investment firm that regulates healthcare.
The headquarters of Aurora Healthcare is in Milwaukee. They are a non profit organization with a wide range of hospitals, clinics and pharmacies that employs over 30 000 employees.
Profit and Loss.
not for profit
The profit Margin for Pepsico is 11.* in 2008. Go to reuters.com
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.