What is the Prospect for the NFP Hospitals?

A Not-for-profit (NFP) organisation can be defined as an organization that is managed and controlled for community welfare and not for gaining profit. In terms of a hospital, a NFP hospital can be defined as a hospital which is operated for social wellbeing and community benefit. It can be a government hospital (public/community hospital) or a non government hospital. In the last decade, not-for-profit hospitals (NFPs) have been given much attention by hospital administrators, the government and the community. The obligation of these kinds of hospital is community benefit with justifies their status.

There are both positive and negative points regarding NFP hospitals. The most important problem to consider is that NFPs are generally less efficient at giving services than for-profits (FPs). Also NFP hospitals are less cost effective, in which economic viability of the hospitals will determine their future. In this term, NFPs are reported less profitable and having trouble on how to manage their finance.

The management aspect of both NFP and FP hospitals gradually become more similar. This is because at the same time, they compete and adopt each other from their advantages, disadvantages and strategies. However, a big problem related to mindset or mentality remains affect the NFPs. Therefore to be able to survive in the future, NFP hospitals should recruit talented leaders, managers and staff with a good expertise and sense of business as well as have a vision that NFP hospitals should give community benefit.

From the financial point of view, it is shown that it is hard for NFP hospitals to provide effective and efficient performance with positive financial results. Many of them are even fighting to be able to survive in the very competitive business world. Contrary to this evidence however, some experts have a different view on this aspect. They assert that the future of NFPs will determine by how they apply economical principles on solid business practices and how to cope with the improvement in technology.

In terms of quality service aspect, some research results show that NFPs seem to have better services in treating elderly people. However, these results were directly contented, that the methodology used in measuring quality of services is somewhat questionable. This means that many other factors than just hospital status that may be the main determinants of quality of services in hospitals. It implies that to keep the initial mission on the track, NFPs should develop a strong mentality to provide continual attempts of good quality services.

In conclusion, NFP hospitals will have a good prospect if they can recruit talented leaders, managers and staff with expertise and business sense, apply economical principles based on solid business practices and cope with the improvement in technology. Finally, to be able to keep the initial mission on the track, NFPs should develop a strong focus to provide continual attempts of good quality services.