All That You Need to Know About Private Hospitals

hospital (3)Private hospitals are business institutions that offer medical services for a fee. Usually, they are not funded by the governments and therefore their services are more expensive than the services offered by public hospitals. Although these private institutions charge very high prices for their services, they play very important roles in the society. The following sections explain how these hospitals are formed, their advantages as well as their disadvantages:

Starting a privately sponsored hospital

In most countries, medical professionals are allowed to start their own hospitals and compete with the public hospitals in those countries. However, there are very strict requirements that one must satisfy in order to be allowed to offer medical treatment services. All the medical specialists to work in the private hospital are required to be well trained by institutions that are recognized by the country or state in which the hospital is to be set up. In some countries, a medical specialist is required to be registered by a professional body. Other requirements that investors who wish to start their own hospitals must satisfy include the following:

– The hospital must abide by all the laws and regulations that govern the operation of all the hospitals. Assume an example of a hospital which is to be set up in a country that has outlawed abortion. Such a hospital must not carry out abortion except in situations where the life of the expectant lady is in danger.
– The owner of the hospital must explicitly specify whether the business is a partnership or a sole proprietorship business.
-A privately sponsored hospital must pay the applicable tax returns to the government.
-Private hospital owners must also obtain valid licenses before the hospitals start their operations.

hospital (1)Advantages of a private hospital

There are a couple of advantages that private hospitals offer to governments and members of the general public. Some of the most notable advantages are as follows:

Provision of high quality services

In most third world countries, the quality of services offered in public hospitals is not up to par. In some countries, public hospitals lack the requisite facilities and drugs. On the other hand, private hospitals are well equipped with most of the essential facilities and drugs in order to offer the best quality of services to the customers. The high quality of services enables the hospitals to remain competitive and to enjoy some customer loyalty.

Creation of jobs

The hospitals create employment opportunities not only in the medical field but also in other fields as well. Some of the jobs created are administrative/ managerial, clerical and Information Technology jobs. By creating the jobs, the hospitals help in improving the economy.

Source of revenue to the government

Since the hospitals are business organizations, they pay some tax returns to the governments of the countries or states in which they (the hospitals) operate. Paying taxes to the government is another way in which the private hospitals contribute to the growth of the economy.

Disadvantages of the hospitals

Although non-governmental hospitals offer numerous advantages to governments and the public, they have some disadvantages associated with them. Some of the disadvantages are as follows:

230578_hospital_6Their services are very expensive

The cost of seeking medical treatment services in privately sponsored hospitals is very expensive. Most low-income and some middle-income earners cannot afford the cost of medical treatment in these hospitals.

The hospitals encourage corruption in the public hospitals

Since qualified medical professionals such as doctors and nurses are scarce, most of the professionals who work in public hospitals also work in some other privately sponsored hospitals. It has been observed in some countries, especially the developing countries, that some medical professionals misappropriate drugs in the public hospitals and supply them to their own privately sponsored hospitals. This causes a lot of suffering to poor people who cannot afford to seek medical treatment in the privately sponsored hospitals. The cost of essential drugs in pharmacies and privately sponsored hospitals is higher than the recommended prices at public hospitals.


Privately sponsored hospitals like are very important in boosting the economy and the provision of medical services. If governments put in some effort to minimize corruption that may be attributed to the establishment of the private hospitals, the hospitals can be vital organizations appreciated by everybody in the society.