Nonprofit or For-Profit Healthcare OrganizationsThe debate over whether all healthcare organizations should be nonprofit or for-profit brings up many complex questions which need to be resolved. What needs to be examined is whether nonprofit hospitals are better than for-profit hospitals, and whether there is enough evidence or data to confirm whether one is better than the other. When we think about nonprofit and for-profit healthcare organizations, what usually comes to mind is that the big difference between the two is that, unlike profits, a nonprofit for-profit will have greater access to large government tax subsidies, will not be allowed to distribute profits to owners or others controlling the organization, and will be exempt from corporate taxes. and donations (Pan, 2013, p. 675). Nonprofit hospitals were established by various charitable organizations and generally accept anyone who walks through their doors, regardless of their ability to pay for their services. A nonprofit organization enjoys a tax exemption, and typically a nonprofit hospital, especially in large urban cities, may be busier at any given time than a for-profit hospital. A nonprofit hospital is governed by the communities it serves. Hospital leaders say any profits made support their mission to care for all patients, rich and poor, and that they must pay competitive salaries to attract and retain talented doctors and nurses to compete. A nonprofit hospital benefits the community it serves. One such benefit is charity care, the free care they provide to the uninsured or the amount of a bill that is written off due to the patient's inability to pay their bills (Pan, 2013, p 681). , or investor-owned hospital, means middle of paper ...... employees, and getting them emotionally involved so they want to be part of the team. Another way to improve the financial performance of nonprofit hospitals is to control labor costs and develop operational solutions to reduce expenses without diminishing the quality of care provided to patients. Additionally, nonprofits can also improve their financial performance by working to improve relationships with physicians and reduce patient length of stay by leveraging nurses and physicians to share approaches and techniques for effective management (Norwick, 2010, p. 131). Due to cuts in Medicare and Medicaid that have led to lower reimbursement rates for hospitals and other healthcare organizations. It is essential that nonprofit organizations continue to streamline their services and provide good quality patient care, while reducing costs, to remain a valuable asset in the community..