St. Jude Children's Research Hospital is a non-profit hospital that relies on donations rather than profits. For-profit hospitals need to run their business entities successfully to ensure funding for non-profit activities. While for-profits provide state-of-the-art care, non-profits still provide good services if committed to their social mission. Donations to non-profits are reported as corporate philanthropy. Government-owned hospitals receive direct funding without relying on donations, as governments are more concerned with social impacts than financial risks.

1. Resources: Case 3: Charitable Contributions and Debt: A Comparison of St. Jude Children
Solution
2. Investor owned hospitals have to ensure that their for-profit entities are run successfully and
professioanly, like any other business entity. If this is not done, then the investor will not be able
ensure and commit enough resources for its not-for-profit entities.
For-profit entitties usually provide state of the art health care systems and top medical care. They
employ good medical and administrative staff. The organizations will not provide the
comparable services and infrastructure in the not for profit hospitals, but if it is seriously
committed towards the larger social cause, the services provided will be good if not top notch.
As per SEC, all donations being made to not for profit entities, comes under Corporate
philanthrophy. All companies will have to report the amount of donations being made by them.
3. If the hospital is government owned and operated, it will get direct funding from the
government and will not have to depend on the corporates for donations. Government, usually
have a central fund, from where the financing of such entities takes place. The government will
be more concerned about the social implications than the financial risk involved. Hence, the
fundings will be quicker from the government.