Healthcare Delivery System Essay

Pages: 2 (621 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: College Senior  ·  Topic: Healthcare


The primary way that consumers afford care at for-profit hospitals is through insurance. Private insurance companies contract with hospitals and arrange for set prices that include the overall costs to the hospital and a margin of profit for each procedure. Because for-profit hospitals are registered as a for-profit business, the hospital is permitted to generate a high profit line and offer investors a return for their investment in the company. In order to accomplish this goal, however, for-profit hospitals continually raise their overall prices and renegotiate with insurance companies. According to an article by doctors Woolhandler and Himmelstein, the costs of healthcare in for-profit hospitals tends to rise by at least 1.2% every four years. This increase results in higher overall costs to afford the very insurance that is necessary to use these facilities, thus making it even more difficult for the poor to afford insurance. Non-profit hospitals, on the other hand, are filed as non-profit entities and cannot list a high annual revenue. In fact, few non-profit hospitals list any revenue whatsoever. The reason for the loss in revenue is that non-profit hospitals are required to care for all patients regardless of whether the patients can pay for the care. This also means that less money can be reinvested in the hospital, resulting in lower quality care.

Overall, for-profit hospitals provide better care than non-profit hospitals. Regardless of being more expensive, the profit allows for benefits to the healthcare delivery system that are otherwise not available.

Works Cited

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Cutler, David (2000). The Changing Hospital Industry: Comparing For-Profit and Not-for-Profit Institutions. National Bureau of Economic Research: 93-112.

Pattison, Robert (1983). Investor-Owned and Not-for-Profit Hospitals -- A Comparison Based on California Data. N Engl J. Med, 309: 347-53.

TOPIC: Essay on Healthcare Delivery System Within the Assignment

Woolhandler S & Himmelstein D (1997). Costs of Care and Administration at For-Profit and Other Hospitals in the… [END OF PREVIEW] . . . READ MORE

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How to Cite "Healthcare Delivery System" Essay in a Bibliography:

APA Style

Healthcare Delivery System.  (2012, June 7).  Retrieved December 1, 2021, from

MLA Format

"Healthcare Delivery System."  7 June 2012.  Web.  1 December 2021. <>.

Chicago Style

"Healthcare Delivery System."  June 7, 2012.  Accessed December 1, 2021.