Discussion 6
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Southern New Hampshire University *
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610
Subject
Medicine
Date
Dec 6, 2023
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docx
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Uploaded by ColonelScience93202
Identify three conflicting financial values of public hospitals (government hospitals) and
private hospitals (for-profit and nonprofit).
There are several key differences in how public and private hospitals are run.
Private
hospitals are usually owned by investors or individuals.
Within private hospitals, they are driven
by profit and focus on increasing revenue while keeping costs low so the returns can be given to
stakeholders (Cheny, 2019).
Public hospitals are usually driven to serve the public and aim to
provide services for all people despite their ability to pay.
For private hospitals tend to have a
mix of investors and community leaders on their board, while public hospitals tend to have more
public leaders, and people who work within the hospital (Cheny, 2019).
Another key difference
between private and public hospitals are private hospitals tend to focus on cost efficiency and
prioritize services to patients that they know will create a profit for them (its rare, but some
private hospitals will have specialty units like burn units or a NICU) while public hospitals are
obligated to provide services that may not make as much of a profit such as an emergency room
or mental health services (Cheny, 2019).
One last difference between private and public
hospitals is private hospitals attract patients who can afford their services and may not accepts as
insurance providers as public hospitals, charge more for services and invest more in their
marketing than public hospitals (Wooster Community Hospital, 2019).
Public hospitals aim to
provide access to any person who needs care with a wider variety of insurance acceptance.
Describe how values influence the financial models of public and private hospitals
.
Values play a large role in how a hospital will operate in terms of decision-making, how
they use their resources, and their financial strategy.
Public hospitals for example put more value
in making care more equitable by providing access to all who need care, even those who cannot
afford care.
Public hospitals tend to focus more on community health and will make decisions
that will prioritize community health over making a profit.
They are a not-for-profit organization
and are held accountable by governmental agencies and the taxpayers in the community they
serve.
Since private hospitals rely more on the reimbursement from insurance companies and
patients, they may place higher values on profitability and that also places values on providing
services that increase the organization’s revenue.
Private hospitals also place value on providing
care that is cost efficient and using resources in a productive manner.
Since private hospitals rely
on profits from insurance companies and patients, they place a high value on customer
satisfaction.
Compare the financial values of public and private hospitals and how these values affect
health policies and laws.
Public hospitals are required to comply with all healthcare policies/laws which can
sometimes cause financial difficulties.
While they receive funding from the government,
budgets may be negatively impacted because of other government spending policies.
There also
could be the development of laws/policies regulate spending or maintain accountability.
Private hospitals are also regulated but not as heavily as private hospitals and have more
flexibility in deciding which services to offer patients and how to set their prices, but there are
still required to follow the laws regarding the quality of care given to patients and patient safety.
Cheny, Christopher. (September 3, 2019).
3 Strategic Differences Between Nonprofit and For-
profit Hospitals.
https://www.healthleadersmedia.com/clinical-care/3-strategic-
differences-between-nonprofit-and-profit-hospitals
Wooster Community Hospital. (May 3, 2019).
Public Hospitals vs. Private Hospitals.
https://www.woosterhospital.org/public-hospitals-vs-private-hospitals/
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