6-2 Activity: Financial Needs of Stakeholders

Roy George Thundathil

SNHU

IHP-610-Q2473 Health Policy and Law 23TW2

Dr. Marcy Adams

January 21, 2024

The hospital chosen for profit is Sunrise Hospital and Medical Center, located in Las

Vegas, NV. This is known to be one of the biggest for-profit hospitals in the United States.

(About Us,n.d) The Hospital Corporation of America owns it. (About Us,n.d). The nonprofit

hospital chosen is New York City Bellevue Hospital, located in New York City. Bellevue is

probably the oldest nonprofit hospital in the United States. (About NYC Health + Hospitals,n.d).

Summer Song’s primary goal is to give people a healthier tomorrow. NYC Bellevue Hospital

aims to help you live the healthiest life possible and build healthy neighborhoods. (Patients and

visitors). These impact the financial aspects that can control the funding for different reasons.

Lobby Hospital’s primary mission is to deliver the highest quality healthcare service with

compassion, dignity, and respect regardless of income, gender, identity, or immigration status.

(Mission and values). Sunrise Hospital’s primary mission is that we are a community dedicated

to healing. (Mission and Vision). Their vision statement is we set the standards of excellence.

(Mission and Vision) the fundamental difference between Bellevue Hospitals is that they strive to

provide quality equal care to everybody in the community compared to Sunrise Hospital, which

provides the highest quality services. Both hospitals want everybody to be healthy. Bellevue

Hospitals tries to provide all the services available for quality care without worrying about

money.

Financial strategy

When it comes to the finances of for-profit nonprofit hospitals, there's a big difference.

Most hospitals serve the patients and have doctors and nurses that work for them. They have a

structured framework in which they work and provide clinical services. For-profit hospitals have
a different system in which they mix, generating income for investors. (Cheney, 2019). A

significant difference is the tax status between for-profit and nonprofit hospitals; for-profit

hospitals like Sunrise must pay property and income taxes. Hospitals like Bellevue do not have

to pay anything. (Becker, 2022). Bellevue must make sure they maintain their federal tax-exempt

status. They must demonstrate this under the current community benefits standard that the

Internal Revenue Service adopts. They must maintain that their main goal is the promotion of

health, which benefits the community. (Bai et al.,2021).

There is a vast difference between the financial needs of for-profit and nonprofit

hospitals. For-profit hospitals must make sure they have equity. For-profit hospitals must use a

business model that depends upon high and stable cash flow. They target lucrative sectors such as

elective surgeries for less complex patients. Nonprofit hospitals have to use different resources

for profit. All the funding comes from different charities and religions, as well as research and

education funding. Nonprofit hospitals do not have the same resources for revenue as for-profit

hospitals. All the funds come from donations, charities, grants, and federal and state funding. The

nonprofits have enormous resources that can be reinvested into the infrastructure to provide the

best health care to all its community patients. The investments include replacing old technology,

updating the equipment, and refunding new resources.

Provisions of Uncompensated Care

This means that hospital care is provided with no payment and is received from the patient and

the insurer. There is a vast difference between the Provision of uncompensated care between for-

profit and nonprofit hospitals. This all varies and depends upon the size and location of the

institutions. Uncompensated care is based on the total hospital debt and financial assistance that

the hospital provides. Bad debt is what the hospital cannot get back and reimbursement for the
care they provided. Financial aid refers to reimbursing care for those in need at a lesser cost.

(American Hospital Association, 2022)

There is a big difference between for-profit and nonprofit hospitals. The for-profit and nonprofit

hospitals provide what is referred to as charity care. It is expected that nonprofit hospitals will

spend much less than for-profit hospitals. The reason is because they are designed in this way.

But at the same time, there's not a big difference between hospital types and the charity care

spending between large for-profit and nonprofit hospitals. (Garber, 2020). Sunrise Hospital has

financial assistance programs. They offer Free Hospital care for patients who received

nonelective patient care. Sunrise Hospital often provides full or partial charity to patients

documented as low-income at the federal poverty level. (Patient Financial Resources, n.d.)

Liability for Malpractice

There is a massive difference between the liabilities of for-profit and nonprofit hospitals. Most of

the time, nonprofit hospitals do not function to make money; hence, they have limited liabilities.

On the other hand, hospitals can be sued for medical malpractice, falls, slip injuries, or harm that

has happened during care. Liability they are sued for. Liabilities for nonprofit hospitals and for-

profit hospitals are different. For-profit hospitals are usually sued for malpractice based on the

extent of the law set by the medical practice suits. The typical steps have to be followed within

the l litigation rules. It can be either civil or criminal litigations. Private hospitals can also be

sued for medical practice and simultaneously come in with malpractice liability that is limited to

charitable organizations. The IRS recognizes nonprofit hospitals as charitable. Out of this,

$20,000 for negligent acts are performed to pursue the organization's charitable purpose.
Sovereign immunity law is the government’s immunity from criminal or civil wrongdoings.

(Sovereign Immunity, 2019). Sovereign immunity makes huge impacts and liability limits for

malpractice by controlling the liability for which they are sued. Sovereign immunity is a doctrine

that protects a sovereign body like a federal or state government. They will not be held liable for

civil wrongdoings that their employees, agencies, or departments commit. This is a blanket

protection from liability, and it's beneficial for the sovereign but leaves the injured individual

with no solution to the harm. (Suk,2012). For-profit hospitals, sovereign law is not included.

Recommendations

There are differences between for-profit and nonprofit hospitals. For-profit hospitals can make

substantial financial gains, and nonprofit hospitals raise money through donations to complete

their mission. A vast difference is nonprofit hospitals must care for their patients even if they

cannot pay the money. At the same time, for-profit hospitals can refuse treatment to patients if

they cannot pay if they're out of the danger zone. Nonprofit hospitals are community and more

affordable than for-profit hospitals. Nonprofit hospitals don't have to pay any tax at the same

time as for-profit hospitals do. It is understood that both hospitals try to help the community

become healthier. The policies and laws of for-profit and nonprofit hospitals take into

consideration the community's needs and try to establish health care that is more readily

available and cheaper. NYC Bellevue and Sunrise Hospital work with Medicare and Medicaid to

provide the best quality care possible. They also have charity care, discounted care, and financial

programs to help poor people. For-profit hospitals can permanently deny treatment. The

nonprofit hospitals' financial needs are from the community through funding to serve them the

best. The financial needs and laws make it easier to gain more government funding and provide

the best care to its community. The most significant financial need for for-profit hospitals is to
make the most of the money they can to make their shareholders happy. They must always

present a generation of revenue to their shareholders. The most significant financial need Is to

get more government funding so they can give better treatment to the community.

There is a need for both for-profit and nonprofit hospitals in America. The United States has a

vast population. The nonprofit hospitals help provide medical treatment to underserved people

with little access to healthcare. These people who cannot pay for medical treatment often will try

to avoid it. Nonprofit hospitals treat a massive chunk of the population that otherwise could not

receive it; profit hospitals are also needed because they serve a vast population. For-profit

hospitals have to pay property federal and state income taxes. The test helps the government gain

money that the state can use for other purposes. The funding paid to the shareholders also goes

back to the state. The shareholders will spend this money and return it to the US economy. For-

profit hospitals fund themselves and simultaneously give money back to the state and

government agencies that will eventually benefit the community. For-profit and non-profit

hospitals are required to provide health care to the vast population of the United States. For-

profit hospitals have some of the best technology. Nonprofit hospitals benefit from no tax so they

can serve the community. The main goal of both hospitals is to give the best overall treatment to

the population of the United States in the fastest way.

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nonprofit-hospitals/

CHENEY, C. (2019, SEPTEMBER 03). 3 STRATEGIC DIFFERENCES BETWEEN

NONPROFIT AND FOR-PROFIT HOSPITALS. Retrieved from health leaders:

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nonprofit-and-profit-hospitals

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