HCM621-0804A-01 Ethics, Policy, and Law in Health Care Management - Essay - 2

HCM621-0804A-01 Ethics, Policy, and Law in Health Care Management - Phase 1 Discussion Board 2 - Essay Example JCAHO is an independent, nonprofit organization and they carry out quality assessments at 5,000 US hospitals and 6,000 US health care facilities every three years. (AmericanHospital.com, 2008) It would be in the invested owner’s best interest to attain accreditation regardless because any reimbursement from government entities such as Medicare or Medicaid will still require regulation of care. It also gives a certain feeling of trust to know that the hospital has passed stringent rules on healthcare. The for-profit corporation is liable for any fiscal or legal issues, and not an individual. As a for-profit organization, the hospitals best interests are usually managed by board of directors and act in the interest of shareholders (if stocks are issued) or the invested owners. A big advantage of for-profit health care is their ability to respond to the demands of patients and employers. â€Å"†¦a large, nonprofit, staff-model health plan grew rapidly in southern California in the late 1960s and early 1970s as a result of affordable prices, its leaders froze enrollment for several years because of limited capacity. A competitively driven, for-profit, publicly traded organization would have found new capital and expanded its capacity to meet the needs of consumers.† (Hasan, 1996). Taking care of patients in private practice without the risk of influence from a government entity allows doctors and hospital partners design and manage the best quality delivery system they can assemble. Interestingly enough a for-profit hospital can receive Medicare subsidies (with proper accreditation), increasing their ability to profit. But the disadvantage to the for-profit is deeper scrutiny from the public and media for corporate financial scandals. Another disadvantage is that to retain quality medical care (i.e. trained doctors) the total costs are higher. (Woolhandler,