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Hospital Vs Hospital Research Paper

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Hospitals operate very differently than their retail counterparts. This can be largely shown by simply comparing their profit margins. Most hospitals operate with negative profit margins. When a customer enters a store to make a purchase, they are required to have the money or credit to complete the purchase before they are given the goods or service. This is not the case in hospital systems. If a patient is in a car accident, a hospital is obligated to perform the necessary services and medications to save the patient. Although, it would be best case scenario for the patient to be able to pay for the services rendered, it is not always the case. Often hospitals provide services to patients with little or no insurance and no means of paying for what they have received, making their profits the complete opposite of their retail equivalents.
Another key difference in the two systems is the driving decision force. Retail is very customer centered with a highly recognizable slogan, “The customer is always right.” Retail functions by trying its best to appease the customer and cater to their needs to gain profits. This is not the case in the hospital environment. …show more content…
Hospitals are no strangers to supply and demand. They must function much like retailers in continuing to compete in their respective markets in order to remain in business. Hospitals are faced with the pressures of competitive pricing from neighboring facilities, as well as, creating fast turnaround times for insurance incentives. Truthfully, hospitals are reimbursed much like Amazon retailers. Amazon contracts and sells products on behalf of other companies and charges the companies a commission or fee for its services. If people don’t use the products that are offered, essentially, Amazon makes nothing. Without those fees and commissions Amazon would not be able to afford to stay in operation. Hospitals are no

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