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Doing good & doing well.

K Barnett1, M Pittman

  • 1Public Health Institute in Alamo, California, USA.

Health Forum Journal
|May 25, 2001
PubMed
Summary
This summary is machine-generated.

Nonprofit hospitals should redefine "community benefit" beyond short-term financial gains. Expanding the definition to include long-term, measurable community and hospital advantages demonstrates economic viability through strategic social responsibility.

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Area of Science:

  • Healthcare Management
  • Health Economics
  • Community Health

Background:

  • Traditional business models for nonprofit hospitals often prioritize short-term financial returns.
  • The concept of 'community benefit' is frequently evaluated using narrow financial metrics.
  • This approach may not fully capture the long-term value generated by nonprofit hospitals.

Purpose of the Study:

  • To challenge the traditional financial definition of community benefit for nonprofit hospitals.
  • To propose an expanded framework for evaluating the economic and social returns of community benefit initiatives.
  • To demonstrate how strategic community engagement can lead to sustained economic well-being for hospitals.

Main Methods:

  • Conceptual analysis of financial and social return on investment models.

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  • Review of existing literature on nonprofit hospital financial performance and community engagement.
  • Development of a framework integrating long-term, measurable benefits.

    • Main Results:

    • The 'business case' for community benefit requires a broader perspective than immediate financial returns.
    • Long-term, measurable benefits accrue to both nonprofit hospitals and their communities.
    • Strategic 'doing good' can lead to economic success for hospitals.

    Conclusions:

    • Nonprofit hospitals can achieve economic success by adopting a strategic approach to community benefit.
    • Redefining returns to include long-term social and economic impacts is crucial.
    • This expanded view supports the sustainable financial health of hospitals while enhancing community well-being.