Marketing Matrix: For-Profit and Not-For-Profit Health Care Organizations Contrast between For-profit and not-for profit healthcare organizations Aspect of Comparison For-profit health care organization Not-for profit health care organization Level of centralization For profit healthcare is majorly decentralized and decisions are made by individuals under the authority of directors and other employees in the managerial positions. The implementation of policies is not subject to the approval of those in senior managerial positions (Eiland, 2015). There is lack of uniformity in policies implemented in various subsidiaries of for-profit healthcare organizations. There is a high centralization of decision making in which subsidiary hospitals are not permitted to formulate policies affecting their activities without the approval of agencies such as regulatory bodies, government departments, or healthcare secretaries. There is consistency of policies affecting practices in all not-for profit organizations. Levels of Access to capital markets There is low chance of access to capital market due to restrictions and barriers to private firms that operate for-profit healthcare organizations. The operators of for-profit health care organizations have to comply with a number of terms and conditions before accessing loans, grants, or bonds for improvement of their services (Paul III, Godby, Saldanha, Valle & Coustasse, 2016). The likelihood or the ability to access the capital markets funds is high due to few restrictions. Most not-for profit organizations also get loans and grants at subsidized interest rates (Shugarman, Nicosia & Schuster, 2007). A significant amount of funds for operation are provided by the government. Strategic marketing differences The marketing activities focus on improving the welfare of the organizations such as high returns on investments, increase in the number of patients who seek their services, and increased market share. The strategic marketing activities are aimed at achieving a competitive advantage over other health care providers in a region. Marketing is done using private funds. The strategic marketing activities are focused on increasing public health quality such as by increasing accessibility to healthcare services. Marketing activities are also aimed to promoting the affordability of health care services provided to residents of lower economic status in order to improve their health. Marketing is usually done using public funds. Quality Attributes The quality of services is usually high due to the need to increase competitiveness and comply with the quality standards expected of a health care organization (Shugarman, Nicosia & Schuster, 2007). The quality of services is also high because most organizations aim at achieving customer satisfaction and retention. The quality of services is usually not high when compared with for-profit health care services because of lack of profit drive and lack of accounta.

1. Marketing Matrix:
For-Profit and Not-For-Profit Health Care Organizations
Contrast between For-profit and not-for profit healthcare
organizations
Aspect of Comparison
For-profit health care organization
Not-for profit health care organization
Level of centralization
For profit healthcare is majorly decentralized and decisions are
made by individuals under the authority of directors and other
employees in the managerial positions. The implementation of
policies is not subject to the approval of those in senior
managerial positions (Eiland, 2015). There is lack of uniformity
in policies implemented in various subsidiaries of for-profit
healthcare organizations.
There is a high centralization of decision making in which
subsidiary hospitals are not permitted to formulate policies
affecting their activities without the approval of agencies such
as regulatory bodies, government departments, or healthcare
secretaries. There is consistency of policies affecting practices
in all not-for profit organizations.
Levels of Access to capital markets
There is low chance of access to capital market due to
restrictions and barriers to private firms that operate for-profit
healthcare organizations. The operators of for-profit health care
organizations have to comply with a number of terms and

2. conditions before accessing loans, grants, or bonds for
improvement of their services (Paul III, Godby, Saldanha, Valle
& Coustasse, 2016).
The likelihood or the ability to access the capital markets funds
is high due to few restrictions. Most not-for profit organizations
also get loans and grants at subsidized interest rates
(Shugarman, Nicosia & Schuster, 2007). A significant amount
of funds for operation are provided by the government.
Strategic marketing differences
The marketing activities focus on improving the welfare of the
organizations such as high returns on investments, increase in
the number of patients who seek their services, and increased
market share. The strategic marketing activities are aimed at
achieving a competitive advantage over other health care
providers in a region. Marketing is done using private funds.
The strategic marketing activities are focused on increasing
public health quality such as by increasing accessibility to
healthcare services. Marketing activities are also aimed to
promoting the affordability of health care services provided to
residents of lower economic status in order to improve their
health. Marketing is usually done using public funds.
Quality Attributes
The quality of services is usually high due to the need to
increase competitiveness and comply with the quality standards
expected of a health care organization (Shugarman, Nicosia &
Schuster, 2007). The quality of services is also high because
most organizations aim at achieving customer satisfaction and
retention.
The quality of services is usually not high when compared with
for-profit health care services because of lack of profit drive
and lack of accountability. Most employees of not-for profit
health care services provide their services with the objective of
improving access to health care services without necessarily
improving the quality of treatment, medication, or patient
education services (Eiland, 2015).
Management of pricing and volume

3. The pricing is usually high and patients have to incur high cost
to access services such as careening, treatment, and
medications. The high cost of treatment is due to the fact that
for-profit health care organizations incur high cost of operation
such as taxes and licensing fees which has an impact on their
profitability (Paul III et al., 2016). Management of volume is
achieved by the expansion of a medical facility or increasing
the number of staffs.
The pricing is comparatively low and most services are
provided free of charge. The payments for staffs are usually
high and most employees feel satisfied with their earnings.
The management of volume is achieved by increasing funding
for the construction of more healthcare facilities.
MARKETING MATRIX 4
References
Eiland, M. R. (2015). Differences Between For-Profit and
Nonprofit Hospitals: Perceived Quality and
Access (Doctoral dissertation, Walden University).
Paul III, D. P., Godby, T., Saldanha, S., Valle, J., & Coustasse,
A. (2016). Quality of care and profitability in not-for-profit
versus for-profit nursing homes.
Shugarman, L. R., Nicosia, N., & Schuster, C. R. (2007).
Comparing For-Profit and Not-for- Profit Health Care
Providers.