Non-profit and for-profit hospitals

Non-profit medical institutions refer to medical institutions set up and operated to serve the interests of the public, not for profit, and their income is used to cover the cost of medical services.

Difference and Comparison

China's medical institutions are generally categorized into government-run, non-profit medical institutions, and for-profit medical institutions.

Government-run are generally general hospitals, which undertake the main social medical functions. Non-profit medical institutions generally have their own characteristics or specialties, to assist the government-run social medical functions. For-profit medical organizations generally have better environment and services, but charge high fees.

Extended information

Difference in nature:

(1), different business objectives

Profit medical institutions run the goal of profit maximization; non-profit medical institutions run the goal of a specific social objectives, not to make money for the purpose.

(2), the distribution of different

Profit medical institutions profit, the investor of the after-tax profits can be dividends; non-profit medical institutions do not aim to make money, but in order to expand the scale of medical care, can also be appropriate profit, but this profit can only be used for their own development, can not be dividends.

(3), the use of income and expenditure balances are different

Profit medical institutions of income and expenditure balances are used for investor returns. Non-profit medical institutions, income and expenditure, balance can not be used for the return of investors, nor for its employees in disguise, all profits and surpluses can only be invested in the re-development of the organization, for the purchase of equipment, the introduction of technology, to carry out new services, or to provide citizens with low-cost health care services.

(4), the price standard is different

Profit medical institutions to provide medical services to implement market-adjusted prices, medical institutions according to the actual cost of services or market supply and demand for independent price setting.