Economics discussion responses

In responding to  your classmates’ posts, assess the impact of an organization’s nonprofit or for-profit status on healthcare costs for the consumer. Do you think the status of the organization impacts the quality of care?Post #1 ;Alexandria AiroHello Everyone!So, for this week we are discussing for – profit and nonprofit organizations. For healthcare professionals and consumers, it is essential to understand the differences between the two terms because they can affect care and possibly have financial impacts (Writing, 2017). Firstly, for – profit organization works to earn a profit and owned by the government, investors, and other stakeholders of another company (Scalesse, 2013). The funding for a for – profit organizations is received through not only investors, but also loans, revenue, and shares of stock (Henderson, 2018). This type of organization is required to pay taxes and earnings are distributed to the people in the organization, does not provide as much access to healthcare as much as a non-profit does, they care more about the proceeds or profits that they obtain than the care that is being delivered, and healthcare professionals tend to have lower wages (Scalesse, 2013 & Writing, 2017).On the other hand, a nonprofit is owned by communities and do not pay taxes and or distribute their profits (Scalesse, 2013). In addition, nonprofit organizations provide more care and treat everyone even if they do not have the ability to pay (Writing, 2017). This creates a nonprofit to be more preferred by the people. In a nonprofit organization, people also tend to have more access and availability to community benefit services, healthcare professionals receive higher pay (Writing, 2017). It is important to note that they receive capital from donations whereas for – profits do not, and the organization does not benefit from shares or stock. All of the talk about nonprofits is due to their goals and wants of providing care and services out of the greater good to help and benefit people, it is not done just to receive money.Despite these differences, there are some aspects that both of these types of organizations have. These organizations provide community benefits or care to people in the community/consumers. One may provide more than the other, but they both contribute to helping the people of the community. Another comparison is that they both have mission, goals, and objectives to achieve (Nonprofit Organization (NPO) Central, 2021). Both for – profit and nonprofit have limited resources and funds to reach goals even though nonprofits tend to allocate more of these resources (Nonprofit Organization (NPO) Central, 2021). In addition, just like other people and companies, they are required to report finances to the IRS. Lastly, these organizations have boards to help with efficiency and effective working within the organization (Nonprofit Organization (NPO) Central, 2021). However, there are specific tax regulations that differ between both types of these organizations.Firstly, tax regulations for a for profit organization includes being subject to having to pay taxes at the local, state, and federal level (Walden University, 2021). This is provided and reported to the IRS through a financial statement that includes a balance sheet that entails the owner’s or stakeholder’s equity and any assets (Walden University, 2021). For a nonprofit organization, it is exempt from taxes once approved by the Internal Revenue Service (IRS) as (501(c) 3) (Walden University, 2021). This type of organization must have a statement of financial position for just assets instead of a balance sheet because they do not have owners and do not pay taxes (Walden University, 2021). Now, it is important to really think about if these tax distinction between a for – profit and nonprofit is fair.Nonprofit and for – profit organizations depend on different things for funding and income, this tax distinction can be considered fair. Today, nonprofits are receiving reduced income due to reductions of funding in Medicare and Medicaid, which causes challenges (Scalesse, 2013). Nonprofits depend on the community to make their income whereas for – profits depend on investors, other stakeholders, the government, and can gain funding from shares in stocks. This provides for – profits to have a greater advantage at always having funds available, but nonprofits have a disadvantage here.  In addition, nonprofits now pay a larger percentage of costs due to the high number of uninsured and individuals now under unemployment and expenses have increased creating a net loss for these organizations (Scalesse, 2013). Therefore, with these circumstances and the less opportunity that nonprofits have a receiving income and funding, the tax distinctions are fair.Hope that everyone has a wonderful week!- AlexandriaReferences:Henderson, J. W. (2018). Health economics and policy. MBS Direct Vital Source (7th ed.). Cengage.https://mbsdirect.vitalsource.com/#/books/9781337668279/cfi/45!/4/[email protected]:0.00.Nonprofit Organization (NPO) Central. (2021). Similarities & differences between nonprofits & for-profits. Nonprofit Organization (NPO) Central.https://www.startnonprofitorganization.com/nonprofits-versus-business/#:~:text=Similarities%20between%20Non%20Profits%20and%20For%20Profit%20Business,products%20or%20services%20are%20known%20by%20every%20one.Scalesse, M. (2013). The great healthcare debate. Nursing Management (Springhouse), 44(11), 38–43.https://doi.org/10.1097/01.numa.0000432220.71510.72.Walden University. (2021, February 26). For-profit-vs-nonprofit accounting key-differences. Walden University.https://www.waldenu.edu/online-bachelors-programs/bs-in-accounting/resource/for-profit-vs-nonprofit-accounting-key-differences.Writing, A. (2017, November 21). Business & financial differences between profit & nonprofit hospitals. Small Business – Chron.https://smallbusiness.chron.com/business-financial-differences-between-profit-nonprofit-hospitals-492.html.Post # 2Trina Cox postedFor profit- organizations that have stakeholders while nonprofit governing boards. These boards are volunteers that don’t get paid or any special compensations. The votes from the board votes and appoints CEO that manage the organization. When nonprofits hire staff, they hire staff to run the daily operations of the organization. When an organization such as a nonprofit has to much or excess revenue that must reinvest and is not allowed to distribute out to others.  Nonprofits usually are to further a social cause (Henderson, 2018).  A Profit organization usually concerned with what their interest are. This usually help the organization only and no other sources. They must pay taxes and register with the state. If they receive donation, these are subject to tax polices unlike non-profit. For-profits hospital are usually owned by either investors or shareholders of pubic ally traded company.The tax distinction between nonprofit and for-profit organization is fair when nonprofits stick to the legislations set by government. A concern arises however when nonprofit hospitals convert to for-profits. This is such a problem that legislature has pushed laws to restrict the ability of hospitals to become for-profit (Nonprofit Organization (NPO) Central, 2021). Nonprofit hospitals seek to turn to for profit due to the fear of struggling in small communities. However, this is problem and hinders the nonprofit from helping the poor and smaller communities with bigger problems.ReferencesHenderson, J. W. (2018). Health economics and policy. MBS Direct Vital Source (7th ed.). Cengage.https://mbsdirect.vitalsource.com/#/books/9781337668279/cfi/45!/4/[email protected]:0.00.Nonprofit Organization (NPO) Central. (2021). Similarities & differences between nonprofits & for-profits. Nonprofit Organization (NPO) Central.https://www.startnonprofitorganization.com/nonprofits-versus-business/#:~:text=Similarities%20between%20Non%20Profits%20and%20For%20Profit%20Business,products%20or%20services%20are%20known%20by%20every%20one.

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