Not-for-Profit Survival in a Competitive World

Morrisey, Michael A.
June 2006
Frontiers of Health Services Management;Summer2006, Vol. 22 Issue 4, p35
The article reports that not-for-profit (NFP) hospitals in the U.S. are finding it difficult to survive due to tough competition from specialty hospitals and for-profits, which have the added advantages of advance technology and profitability. There is the need for NFPs to generate a surplus so that they can take up all manner of good works. Profitability promotes entry, and with the help of technological advance it can bring structural changes in an industry. The changes to the hospital industry are well under way, with the advance of laparoscopic and laser techniques having made surgery easier and allowed patients to recuperate faster. The community hospitals are finding themselves in a competitive world, which is much different from what they have witnessed in the past.


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