Final answer:
Private, non-profit hospitals in the hospital industry are often driven by philanthropic motives and enjoy tax benefits. The physician's workbench relationship between physicians and hospitals can contribute to the medical arms race.
Step-by-step explanation:
a) Two reasons why the hospital industry tends to have a high percentage of private, non-profit hospitals:
- Philanthropic nature: Many hospitals are founded by individuals or organizations who have a philanthropic motive. They establish non-profit hospitals to serve the community and provide healthcare services to those in need.
- Tax benefits: Non-profit hospitals enjoy tax benefits as they are exempt from certain taxes due to their charitable and community-focused activities. This can incentivize hospitals to operate as non-profit organizations.
b) The physician's workbench relationship between physicians and hospitals can be viewed as a contributor to the medical arms race:
The medical arms race refers to the competition among hospitals to acquire advanced technology and offer cutting-edge medical services to attract patients. The physician's workbench relationship, where physicians have privileges at multiple hospitals, can contribute to this arms race as hospitals strive to provide the best resources and technology to retain physicians and cater to their demands.