This resource page accompanies our episode with Tizgel High. One of the things that became clear during our conversation is that the distinctions between the types of hospitals was not clear to us. In order for us to understand our ability to meet healthcare challenges, we need to know how the systems work!
Nonprofit, For Profit, Charity?
What are the differences between nonprofit hospitals and for profit hospitals? Both of them are corporate entities and are concerned with the bottom line profits of their organizations. As Tizgel pointed out just because a hospital is nonprofit doesn’t mean they aren’t trying to make money. Here’s an excellent article that explores the difference between for profit and nonprofit and the role investor demands can play. A more basic explanation can be found here. Both nonprofit and for profit hospitals can provide what is called “charity care.” But, there are also charity hospitals which are nonprofits that provides treatment for poor and uninsured people who can not purchase treatment. St. Jude’s Children’s Hospital is an example of a charity hospital.
Hospitals Can Do Better to Serve Community Needs
Both for profit and nonprofit hospitals can do more to serve the needs of communities. The National Library of Medicine has an article that encourages for profit hospitals to become anchors in their communities. But shareholder pressure can negate efforts to serve communities better. For example, a Goldman Sachs research report recently asked whether curing people was a “sustainable” model.
Similarly, there is an argument that nonprofits should use lessons from COVID to support their communities and advance public health. Lately, attention is focusing on nonprofit hospitals because they may not be doing enough charity work to warrant their tax free status. Studies support the argument that nonprofits are growing cash reserves AND profit, but not providing charity care. As consumers we should ask if the drive for profit is compatible with providing equitable access to healthcare for all.
Should We Move to Universal Healthcare?
Universal healthcare is a very controversial subject in the American political environment. But, as health care costs continue to sky rocket and people often must chose between healthcare and other life sustaining necessities, it’s worth thinking about. There is some interesting data out there on the rates of US bankruptcies caused by medical debt versus other countries in the world. Here’s a link to an article that lists the arguments against universal healthcare and gives counterarguments. In order to exercise our voting power to obtain what our communities need, we must educate ourselves on these healthcare issues.