Chapter 10, Problem 1QAP

To determine

The major criticismsof profit-oriented hospitals.

Explanation of Solution

With an increasing competition in the field of medical care services during 1980’s, a quality enhancement was much needed over cost efficiencies.This has been instrumental in creating an intense race among service providers of medical care.

However, the continued competition posted a need for quality enhancement as well as cost efficiencies during the 1990’s. The changes in the medical care landscape that had begun in the previous decadehave made hospitals focus more on maintain competitiveness while earning a profit.

There are a number of criticisms channeled towards hospitals that operate with an intention of earning profits. The corporate mindset of hospitals emphasizing on profit earnings have led them to leverage themselves with debt.

In other words, in leveling up the scale of operations, hospitals have sought after the assistance of debt. The creation of multiple hospital chains is also being criticized in this relation.

Also, if the hospitals are focused on earning profits, then responsibilities will be evaded and patients’ care will be neglected. It will lead to over-exploitation of patients who are in dire need of treatment.

A patient coming in for a simple treatment of a disease might be admitted for several days in ICU to earn profits. This is the reason hospitals should not put earning profits as their top agenda.

Further, hospital administrators earning exorbitant salaries are being heavily criticized. This posts a question as to whether the medical industry will unnecessarily focus on earning profits and serving individual interests of officials involved.

It is rather preferred to focus on technological enhancements that shall provide the patients with better treatment and care.