Introduction
Healthcare is one of the most critical aspects of human life. Prevention helps reduce the costs that employers, patients, medical facilities, and insurance companies can incur. Failure to develop healthcare can significantly damage the economy. To meet this need, medical facilities are used to diagnose and treat diseases (Harrison, 2021).
There are two major categories of medical facilities, depending on their ownership form, namely, private and public, or profit and nonprofit (Harrison, 2021). Although both provide medical services, they differ in statistical data regarding the number of hospitals, employees, and other indicators.
Nonprofit Organizations
Benefits and Limitations
To begin with, American healthcare has traditionally been divided into public (nonprofit) and private (for-profit) organizations. The public healthcare system includes hospitals that are fully state-managed and funded or partially state-sponsored. The services offered to patients depend on the budget; as a result, they tend to compromise on quality (Harrison, 2021). Due to limited service availability, nonprofit hospitals attract a large number of patients, leading to long waiting periods for admission. The advantages of public hospitals are affordability and accommodating capacity (Harrison, 2021). Among the disadvantages are long waiting periods and a lack of personalized medical care.
Examples: Kaiser Permanente
There are numerous nonprofit healthcare organizations based in the U.S. Although there is a perception that such organizations are of low quality, healthcare systems are developing and implementing modern technologies to avoid being outpaced by profit-driven systems. Kaiser Permanente is a California-based healthcare company that provides health insurance and medical maintenance services. Currently, the company owns 39 hospitals and more than 700 medical offices (“Fast facts,” 2022). These numbers make this medical center a national leader in holistic healthcare. It signifies that the professionals aim at both prevention and treatment, whereas most public hospitals focus solely on disease elimination.
Given the number of its facilities, the number of workers is significant. According to the source, Kaiser Permanente has over 300,000 employees, including 87,000 physicians and nurses (“Fast facts,” 2022). Considering these figures, it can be inferred that this system is likely to expand, particularly in response to the current demand for nurses. Due to the level of increased stress and anxiety, people are experiencing different somatic disorders, making medical help more relevant. Kaiser Permanente offers a comprehensive range of healthcare services, from preventive care to palliative care, demonstrating its commitment to the health and well-being of its members.
The other constituent to consider is revenue, since nonprofit organizations are often thought to have lower income compared to for-profit organizations. Kaiser Permanente’s income in 2022 totaled $95.4 billion, the largest among all nonprofit organizations in the country (“Fast facts,” 2022). A key element of the reform, which began in 2013, was the requirement that every American buy a medical insurance policy. This fact indicates that income results from health coverage sales, as well as from procedures and drugs sold. The revenue also suggests that COVID-19 has significantly impacted the American public healthcare sector, as organizations could earn more by assisting a larger number of patients.
U.S. healthcare does not include a polyclinic, as family doctors have been in practice for a long time. If any symptoms are present, they are treated first, and based on the examination results, a decision is made on where to send the patient (Harrison, 2021). In terms of the nonprofit system, the same principle applies. Kaiser Permanente offers a range of services to help families lower their medical costs. As a result, the number of its patients exceeds 12 million (“Fast facts,” 2022). Considering all this numerical and factual data, it can be concluded that Kaiser Permanente is likely to be more successful due to its client-oriented approach and its ability to serve a large number of patients. It suggests that nonprofit facilities are likely to develop more quickly due to their accommodating nature.
For-Profit Institutions
Benefits and Limitations
On the other hand, there are private or profit hospitals, which are medical institutions managed and funded by individuals or groups. The owners are responsible for the day-to-day management of the hospital, including financial and human resource management, as well as oversight of the hospital’s technological advancements (Harrison, 2021). Despite the high cost, private hospitals have gained popularity due to their shorter waiting times and personalized care.
Despite the high prices of the services offered, these facilities attract wealthy individuals. Private hospitals have several advantages, including modern medical equipment, shorter waiting times, and individualized care. Nonetheless, they also have downsides: they are costly and can serve only a limited number of patients at a time. Additionally, not every coverage policy is accepted at these hospitals.
Examples: HCA Healthcare
One of the most influential for-profit healthcare systems in the U.S. is HCA Healthcare. This system comprises over 180 hospitals nationwide, making it a leading private healthcare provider (“HCA Healthcare fact sheet,” 2019). Not only does it have offices in the U.S., but it also manages a network of medical centers in the U.K. This is a reputable healthcare organization with proven quality medical services.
The organization has 235,000 employees, making it the largest for-profit employer with professionals dedicated to caring for people and improving their health (“HCA Healthcare fact sheet,” 2019). However, unlike the previous nonprofit medical provider, HCA Healthcare cannot treat any condition without charging fees. It signifies that profit organizations are entitled to discharge a patient if the patient is unable to pay for medical services.
The company’s revenue differs from Kaiser Permanente’s. HCA Healthcare earned $60.23 billion in 2022, which is significantly less than the nonprofit organization’s revenue (“HCA Healthcare fact sheet,” 2019). Such a difference is because private medical centers offer more expensive services, which people are often unable to afford or to cover with insurance. As a result, they are rarely used because individuals prefer public hospitals. Nonetheless, the annual patient number is far bigger– 35 million (“HCA Healthcare fact sheet,” 2019). It exists because people resort to medical treatment once or twice a year, whereas Kaiser Permanente offers membership based on visit frequency.
Conclusion
In summary, the country’s healthcare system is actively supported by the state, with scientific research conducted, priority areas of medicine developed, and advanced technologies introduced. For-profit and nonprofit organizations, such as HCA Healthcare and Kaiser Permanente, offer a range of medical services to U.S. citizens. The main difference is that the public system allows insurance purchases, which make up the bulk of revenue, while the private one mainly benefits from procedure costs. Nonprofit organizations are expected to develop more rapidly as they can provide more affordable services to a larger number of people.
References
Harrison, J. (2021). Essentials of strategic planning in healthcare. (3rd Ed.). Health Administration Press.
HCA Healthcare fact sheet. (2019). HCA Healthcare.
Fast facts. (2022). Kaiser Permanente.