Until the early 1960s, healthcare was largely a not-for-profit business dominated by foundations that employed physicians. Over time, for-profit organizations have flourished, and in the case of some sectors, notably pharmaceuticals, organizations are almost entirely for-profit. There remain differences in the two organization types, though they both serve the same population. A number of behaviors are similar, but there are significant differences. Understanding these differences and the theories behind the behaviors they create is an important subject for all healthcare leaders.

• The nonprofit remains an outlier in the healthcare marketplace as it does not follow the traditional market model in several respects. Discuss the differences between the two types of organizations in terms of quality, service cost, and price.
• Discuss the type of service provider and the type of organization in view of the price of service.
• Analyze the need for more policies that support nonprofit models in the healthcare market.