Required help in understanding why if given today\'s financial and operational b

Question

Required help in understanding why if given today's financial and operational burdens of managing a large or any complex Health care organization, Why woulda health care organization manager change their form of business entity from private/ non-profit to public/for profit? Required help in understanding why if given today's financial and operational burdens of managing a large or any complex Health care organization, Why woulda health care organization manager change their form of business entity from private/ non-profit to public/for profit?

Explanation / Answer

A health care organization manager change their form of business entity from private/ non-profit to public/for profit because of the following reasons:-

1) Once organisation goes public, it can bring its issue and get listed on stock exchange. With the same, the public entity can get a lot of capital from public to run its business smoothly.

2) Non-profit entities have to function as per the rules and regulations of the regulatory. Eyes of SEC and other audit regulators are on the non profit entities regarding their functioning of the business.

3) Public/for profit entities are more adaptable to changes in the service industry than the non-profit entity.

4) A private entity have to resort to bank for their financing. And for that, they have to keep some collateral which is a risky affair if their business does not run as smooth as they expected.

5) People in the country has more trust on the public/for profir health care organizations than the private/non profit entities.

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