3) It may be possible that the stakeholders might have a negative return on investments 4) There might be a difficulty in finding Board members amongst the community due to liability or lawsuit exposure against them personally (Gomez, E. …show more content…
Before a for-profit organization decides to locate itself in the community it attempts to locate itself amongst a large insured population. While the nonprofit organization seems to place itself anywhere in a community. This could be partially due to the availability of funds to either lease or own the facility they are going to do business at, since they rely on sponsors, grants, and government funding. As, I read this article, it demonstrates that for-profit organization 's go after the higher paying procedures, such as offering open heart surgery. Reimbursement of open heart surgery is quite financially beneficial, yet in the study that was performed it shows that nonprofit organization 's cover many unprofitable services, such as Psychiatric care. A for-profit organization would send the patient out for continued Psychiatric care once the patient is stabilized rather than running up a bill that has the possibility of not getting paid by the low income uninsured patient (Horowitz, J.,