A not for profit organization work for charity and not necessarily to get profits. This paper will focus on not for profit organizations in the health sector. Not for profit hospitals are of special interest since they provide essential services in an area that is core to human life, health. The interest in this area is harnessed by the fact that seeking and providing health services can be a very expensive venture, and many people might not be able to afford the cost. When a not for profit hospital subsidizes or offers such health services free, then a huge burden is relieved off the shoulders of many who would not otherwise access such services (Gotshal, 2012).
Scope, structure and composition of not for profit hospitals
Not for profit hospitals undertake activities that are meant for the greater good of the society. Such hospitals are not established for any financial gain but rather to help members of the community. Their legal status is special since they are meant for the benefit of the whole society rather than an individual. Their assets are used only for charitable work, and therefore, the owner or manager of such a hospital will have less control over the entity (Gotshal 2012).
Relationship with other entities
Not for profit hospitals work to complement the work done by government and other for profit health providers. Much of their work is meant to benefit the less privileged in the society who may not afford the charges in government and for profit hospitals. Sometimes the not for profit hospitals may work in cooperation with government and other for profit hospitals to provide essential services to those in need (Goodwin, 2005).
Not for profit organizations are established to give charitable services to their clients. They either help those who may not be able to get those services by subsidizing the cost or for free (Kaplan et al., 2004).