THE ROLE OF NON-PROFIT ORGANIZATIONS IN HEALTHCARE SYSTEM: WORLD PRACTICE AND GEORGIA (REVIEW)

The health care market is substantially different from other areas of the economy and therefore the behavior of health care providers operating in the health care market is different, which is mainly related to the form of ownership. If the market is mainly characterized by the pursuit of maximum profit, medical services market has for some public good features. Because of this, non-profit hospitals in western countries are considered as an alternative form of commercial hospitals. The purpose of the research was to study the role of not-for-profit hospitals, and in this regard examine the situation of the medical market in Georgia. The existing literature about non-profit hospitals, relevant legislation and statistical data, scientific articles, and other related works. The majority of the hospitals in Georgia represent profitable (commercial) organizations. 41,1% of the hospitals owned by private insurance companies, 29,1% by individuals, 18,4% by other types of companies, 3,2% by other forms and 8% is state-owned. In contrast to this, more than 50% of the healthcare system of West Europe as well as USA is composed of non-profit (commercial) hospitals. In Georgia there is no sufficient motivation for operating of hospitals as non-profit organizations. It is necessary to further adjust tax benefit in the Tax Code of Georgia and share European experiences. It is reasonable to increase the role of non-profit hospitals on the health care market that will increase accessibility to healthcare services for population and moreover. It will bring Georgian healthcare system close to the experience of civilized world.