Discussion replies #1 and #2
Submission Instructions:
You should respond to at least two of your peers by extending, refuting/correcting, or adding additional nuance to their posts.
All replies must be constructive and use literature where possible.
Discussion #1
- Difference Between Not- For-Profit and For-Profit Organizations
- There is a grey area between the two terms when it comes to describing the nature of for profit and not-for-profit organizations. The purpose of each of these organizations is where they diverge the most. While for-profit businesses cater to niche markets by providing valuable goods and services, non-profit healthcare organizations prioritize social and humanitarian causes (Ogochi et al., 2022). Typically, these goods and services are offered by businesses with the intention of making a profit.
More distinctions may be drawn between for-profit and non-profit entities. Ownership, principal and secondary missions, income sources, employees, responsibility, and tax status are all possible factors that contribute to the variation. Under some circumstances, healthcare organizations that are not for profit are not taxed, although for-profit companies are always taxed. A primary goal of not-for-profits is to serve society rather than generate profit to share among shareholders, in contrast to for-profit organizations. Donations and grants support non-profit organizations, whereas investment profits and product sales fuel for-profit enterprises. Both paid and unpaid workers make up the staff of non-profits, while for-profits rely only on paid workers.
What Happens if an NFP Organization Makes a Profit
For non-for-profit businesses, taxation is a bigger issue when they make profit. In most cases, non-for-profit organizations do not have to pay income taxes. The rationale for the exemption is that these groups primarily serve to benefit society, rather than for financial gain (Zare et al., 2022). It is possible, nevertheless, for non-profits to make money via their operations. When this occurs, the funds might be used to pay for certain costs. Nevertheless, tax issues may only be expressed when an organization’s actions depart from its original objective and purpose. Consequently, no amount that might be considered a “profit” from an organization’s operations would be subject to taxes (Rosko et al., 2020). The existence of the company depends on the profits made from its operations.
Advantages and Disadvantages of For-Profit vs Not for Profit
One major perk of being a nonprofit organization is being free from paying taxes. Also, limited liability companies offer legal protection for nonprofits since they are distinct legal entities. The owner is shielded from legal responsibility in the event of a breach of contract since the business is liable for its own contractual and other legal duties, unlike when the firm is under the control of a single individual. The members, executives, and directors of a limited liability corporation are shielded from personal responsibility in any legal action against the business (Treinta et al., 2020).
It takes a lot of time and money to create a non-profit organization, which is a major drawback. Additionally, the organization will need to pay extra to get your tax exemption status applied for. The process of applying for a tax exemption may be lengthy and expensive, especially when the services of an accountant, lawyer, or other specialist are required.
Establishing a business with the express purpose of making a profit is a smart move. The group can earn a profit because it can sell products and services. One potential benefit of launching a for-profit business is the opportunity to earn capital that may be reinvested or share among the different owners or shareholders. But businesses can’t apply for some exemptions or grants from the government if they’re structured as for-profits. There are no tax breaks for contributors and investors in for-profit businesses, in contrast to non-profits (Cronin et al., 2021).
Risk Management Influence on Nursing Documentation
The purpose of risk management in healthcare is to detect potential dangers and make plans to deal with them. In order to prevent risks from becoming more damaging to the community and businesses, effective risk management helps in identifying them and then putting measures in place to prevent and deal with them. Legal actions alleging misconduct by nurses pose a substantial threat to healthcare companies. That is why it is fundamental and critical to document patient care in order to make known the actual patients’ health condition and interventions that were performed (Bunting & de Klerk, 2022). Nurses are responsible for providing safe and exceptional care, and this can, most of the time, only be verified by good nursing documentation.
Discussion #2
Discuss the difference between not-for-profit and for-profit organizations.
Healthcare organizations classified as for-profit or not-for-profit primarily differ in their goals and financial structures. Healthcare companies that are for-profit (FP) function to make money for their owners or shareholders (Horwitz, 2005). Any revenue beyond operating expenses is liable to be allocated as profit. Non-profit organizations (NFPs) are guided by a mission. Reinvesting surplus income helps the organization fulfill its objective, as opposed to giving it to owners or shareholders. Financial gain is an FP organization’s main goal. One of the main objectives is to maximize profits, and market forces and shareholder interests frequently influence decision-making. Northshore Medical Center, Florida Medical Center, and Palmetto General are a few FP healthcare organizations.
Non-profit organizations focus on a specific mission or purpose, for example education, or providing healthcare services. The money the organization gets supports its mission rather than individual gain. For-profit organizations must incorporate income taxes and other taxes on profits. NFPs are exempt from taxes because their mission is charitable. For-profits are governed by shareholders and board of directors that must financially keep the hospital or facility at bay. Not-for profit is governed by a board of trustees or directors, with a focus on fulfilling the organization’s mission and serving the community. Jackson Memorial Hospital is an example of an NFP in Miami.
What happens if an NFP organization makes a profit?
If a not-for profit (NFP) organization generates surplus or profit, it does not distribute these funds to owners or shareholders, as there are typically none. Instead, the surplus is reinvested back into the organization to further its mission and objectives. This reinvestment helps the NFP organization enhance its services, expand programs, improve facilities, or support its charitable purposes. Reinvesting profits into the organization allows NFPs to achieve long-term sustainability and better fulfill their mission. It distinguishes them from for-profit entities, where profits are distributed to shareholders or owners. It’s important to note that NFP organizations still need to manage their finances responsibly and transparently.
What are the advantages and disadvantages of each type of organization?
For-profit has many advantages. FPs have the potential for significant financial gains, attracting investors and facilitating access to capital (Mogyorósy, 2004). The profit motive can drive efficiency and innovation, as organizations aim to optimize operations for financial success. FPs can quickly adapt to market demands and changes, responding to consumer needs. Prioritizing profit may sometimes lead to decisions that prioritize financial gain over patient care or community service. Profit-driven models may contribute to healthcare inequalities, as services may be directed toward more profitable demographics. Not-for-profit (NFP) organizations are guided by a mission or purpose, emphasizing the provision of community service and addressing societal needs. Enjoying tax-exempt status allows NFPs to allocate more resources to their mission. NFPs build strong community trust by demonstrating a commitment to social causes. The disadvantages of an NFP vary. NFPs may face financial limitations, relying on donations and grants, which can affect their ability to invest in technology or facilities. Due to the mission-driven focus, decision-making may involve more bureaucracy, slowing down certain processes. In a competitive healthcare environment, NFPs may face challenges in recruiting and retaining talent due to potentially slowing down certain processes.
Describe two specific examples of how risk management has influenced nursing documentation.
Risk management ensures the safety of the patients and the staff. A risk management initiative is to decrease medication errors in a healthcare facility. In response, nursing documentation protocols were enhanced to include additional checks and verifications when administering medications. Nurses were required to document not only the administration of medication but also the specific steps taken to verify the right patient, medication, dose, route, and time. This improved to reduce the risk of medication errors, enhance patient safety, and provide clear record of the safety measures taken. Another example is preventing falls throughout the hospital. Risk management aids in the prevention of falls by making sure the nurses know the proper steps to take when there are risk for fall patients. The proper steps should be followed. A patient should have a bed alarm first, medication next, and a sitter last. Nurses and PCTS are educated on reporting and following the proper steps to prevent falls.
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