Question

Critically discuss whether the not-for-profit status of most U.S. hospitals make them more or less likely to close their doors in the face of falling demand (?).

Answer 1

Not-for-profit status of most U.S. hospitals make them more likely to close their doors in the face of falling demand.

Nor for profit hospitals run on the donations and charities. When demand in the economy decreases, this means that there is less money supply in the economy. Lack of money in the economy will have a negative impact on the findings of not fir profits organisation. They will not be able to raise funds and won't be able to manage day to day expenses. As a result, they will be forced to shut down.

Hence, we can clearly say that not for profit organisation will close ther doors / shut down when the demand falls.