For profit versus non profit freestandin

Although several studies have examined the trend toward the decreasing differentiation of non-profit from for-profit general hospitals, few have focused on freestanding psychiatric hospitals. This study updates previous research that used psychiatric hospital data from calendar year 1986 with data from 1990. In addition, a preliminary examination of the influence of market competition on the behavior of non-profit psychiatric facilities was conducted. Results confirm a converging trend between for-profit and non-profit facilities that is related, in part, to competition. The privatization and 'proprietization' of hospital systems initiated much debate several years ago about the merits of non-profit versus for-profit medical care. That debate has become even more heated as health care reform has moved to the fore. In today's competitive health care environment, the distinction between for-profit and non-profit organizations can become blurred as non-profit facilities experience increasing pressure to adopt for-profit business practices. It may actually be necessary for some non-profit hospitals to earn a 'profit' in order to remain fiscally solvent. Concerns that non-profits are not providing enough 'societal benefit' to justify their special tax status has caused local authorities to challenge that status, bringing about caution from researchers against the hasty dismissal of the important roles that non-profits play in today’s continuum of mental health care.