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Related Experiment Videos

For profits: a look at the bottom line.

R Fein

    Journal of Public Health Policy
    |January 1, 1990
    PubMed
    Summary

    The expansion of for-profit healthcare, particularly hospitals, lacks evidence of efficiency gains. This study argues that potential benefits are outweighed by harm to patients, providers, and the healthcare system.

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    Area of Science:

    • Healthcare Management
    • Health Economics
    • Organizational Studies

    Background:

    • The rise of for-profit healthcare organizations, especially hospitals, is often justified by market ideology.
    • A core assumption is that profit motives drive production efficiency.

    Purpose of the Study:

    • To critically examine the expansion of for-profit healthcare organizations.
    • To evaluate the evidence for efficiency gains in for-profit healthcare.
    • To assess the impact of for-profit healthcare on various stakeholders.

    Main Methods:

    • The study reviews existing literature and economic arguments.
    • It analyzes the relationship between profit motives and healthcare outcomes.
    • Qualitative assessment of potential impacts on patients, providers, and communities.

    Main Results:

    • There is no empirical evidence that for-profit healthcare leads to greater efficiency.
    • Any potential efficiency gains are not demonstrably shared with patients (lower costs) or employees (higher wages).
    • The expansion of for-profits poses risks to patient needs, care delivery, local communities, and the overall healthcare system.

    Conclusions:

    • For-profit healthcare organizations may not align with the needs of patients or the healthcare system.
    • The potential negative consequences of for-profit healthcare outweigh purported efficiency benefits.
    • Market ideology alone is an insufficient basis for supporting the growth of for-profit healthcare.

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