Typical hospitals and physician offices, while operating within the same industry and under the same premises, have different sources of revenue. A similarity is certain services patients can receive as well as a system in which private insurance companies mostly sponsor the procedures. Thus, both hospitals and private officers acquire revenue via private healthcare plans (Basu et al., 2020). This includes complex surgeries, hospital stays, rehabilitation, and monitoring of patients. However, the bulk of the revenue comes from inpatient care when it comes to hospitals (Levy et al., 2021). Private physician offices, on the other hand, acquire the bulk of the revenue in outpatient procedures. Lab tests, scans, minor surgeries, consultations, and various treatments are the services generating the most income.
The most profitable services, in both cases, are interconnected with elective procedures. Hospitals acquire a higher profit when performing scheduled cardiovascular surgeries (Khullar et al., 2020). The most profitable practices for physician’s offices are similar. Thus, specialized healthcare providers also perform the most profitable procedures when they are elective, such as neurosurgeries and cancer-related treatments and interventions (Moon & Shugan, 2020). It is certain that profitability implies that the entity has received more output while implying less output.
Both hospitals and private offices can determine the most profitable service by determining how the two concepts interact. Thus, an initiative of patient education cannot generate the most input yet the output, including professional and financial, is present. On the other hand, a complex surgery followed by a hospital stay, recovery, prescriptions, and further outpatient care is a combination of input and output. Nonetheless, the profit is more accentuated both in a hospital setting and for private practitioners.
References
Basu, S., Phillips, R. S., Phillips, R., Peterson, L. E., & Landon, B. E. (2020). Primary care practice finances in the United States amid the COVID-19 pandemic.Health Affairs, 39(9), 1605–1614. Web.
Khullar, D., Bond, A. M., & Schpero, W. L. (2020). Covid-19 and the financial health of US hospitals.JAMA, 323(21), 2127. Web.
Levy, J. F., Ippolito, B. N., & Jain, A. (2021). Hospital revenue under Maryland’s total cost of care model during the COVID-19 pandemic.JAMA, 325(4), 398. Web.
Moon, J., & Shugan, S. M. (2020). Nonprofit versus for-profit health care competition: How service mix makes nonprofit hospitals more profitable.Journal of Marketing Research, 57(2), 193–210. Web.