Healthcare Paper on Funding of Health Care Services

Funding of Health Care Services

Health care services play an important role in contributing to high quality of life and development of the community.  There exist different healthcare providers around the globe including for profit and nonprofit care providers.  These institutions have different economic impacts that include on the public and overall development of the sector. Nonprofit entities particularly help in empowering the less privileged in the society, increasing overall income among its employees and empowering professionals.

Economic Impact of Non-Profit and For-Profit Health Care Services

Non-profit health care services, mainly community based, are concerned in providing services without the need for personal interests. Economically, they employ a large number of employees providing empowerment opportunities to the society. The employed in turn, pay taxes, buy mortgages and pay rent thereby raising revenue to the country (Non-profit Healthcare, 2018). Additionally, they require little real estate incentive thereby reduced operation and maintenance costs. On the other hand, profit health care service providers offer high quality service thereby improved health standards of the society. In training of health care providers, professional experts are produced encouraging performance delivery (Lesser, 2018). Healthy competition among different service providers ensures improved services produced.

Benefit of non-profit Health care services over For-Profit health care services facilities

Non-profit health care services enjoy low maintenance and operational costs as revenue got in rendering the services are re-invested back to the organization. Additionally, such co-operations are mission driven and offer services without personal interests. Employees in the non-profit services enjoy benefits of low tax deductions thereby save much salary (Hospital Council, 2018). Apart from donations, non-profit institution enjoys additional funding from the government grants.

Non- profit health providers incur high cost in terms of capital, time and resources to set up the organization. Additionally, there are no privacy in scrutiny of organization records and funds as it is open to the public. There is less government intervention when conflict arises as it is controlled by the public and not individuals. Low quality services may be provided thereby discouraging pubic interests in contacting such services.



Hospital Council. (2018). Economic & Health Impact of Hospitals. Excellence through Leadership & Collaboration, 3-46. Retrieved from

Lesser.J. (2018). the Economic Impact of Hospitals & Healthcare Systems. Retrieved from

Non-profit Healthcare. (2018). the value of nonprofit care. Retrieved from