Classical economic theory speaks of human behavior as searching. maximize expected utility: If something is going to generate benefits for us and is within our reach (with little effort), then let’s go for it.
According to this perspective, we would all function pursuing profit, or PROFIT. Do we delve into this about the profit motive of organizations? AI, help us!!! (consultation to ChatGPT, 09/12/2025 “defines the profit motive”)
The profit motive is the intention to obtain a profit, benefit or economic utility, generally as main objective of an activitywhether business, commercial or even in the criminal field, clearly differentiating companies (for-profit) from non-profit organizations (who reinvest profits in their social cause).
The two criteria are well stated: main objective of the organization and reinvestment of profits. Although exceptions are allowed: a responsible company that looks to its future and invests in its reputation can moderate its profit motive; and, on the contrary, a foundation or religious order may have a manager who appropriates part of the surpluses, so that the institution does not profit, but those who direct it do (not to mention the false foundations that hide for-profit companies that also improve their taxation and obtain a bonus in reputation).
and if we go from organizations to peopleIt is clear that maximizing your profits is an essential driver of behavior; Even honest public officials can do it, more easily than is sometimes believed: arrive late, leave early, shirk away, dedicate contracted time to personal matters, take advantage of contacts and work privileges to obtain additional income, etc.
But both organizations and people show a notable diversity of behaviors and motivations; many move away from profit to satisfy other values: compassion, knowledge, the general interest, reputation. the school of behavioral economics (behavioral economics) has studied the behavioral patterns of humans that move away from classic profit maximization. A practical application of these investigations, carried out by Nobel Prize winner Kahneman, and his disseminator Ariely, has been the incorporation of pushes or nudges in public policies to induce behavioral changes other than the purchase of wills or regulation.
Well, maybe in organizational theory. We should adjective the profit motive (in-moderate? in-modulated?) to characterize those contractual relationships with a clear adversarial sign, in which the desire for enrichment dominates over other objectives or values. In the business world, this “dog-faced” externalization relationship has had a predicament, but the relationship between agents seems to benefit from having more stable relational frameworks (in fact, in the European quality model). EFQM (European Foundation for Quality Management) we talk about alliances and resources with other agents (suppliers and marketers of the company).
In any case, in the provision of health services due to their complexity, social relevance, need for stable relationships over time (processes), and market failures that require important regulation (externalities, information asymmetry, equity, supply planning, etc.), it is clearly advisable to avoid adversarial relationships between agents oriented towards profit maximization, and leave room for other values to occupy a large space in the relationship between agents and in contracts.
In an adversarial relationship outsourcing of services to private healthcareFor example, you have problems in the various payment systems: if paid per actThe classic “supply-induced demand” will act (supply induced demand), well demonstrated in the health services research literature. If you pay for capitationThe provider will be tempted to provide fewer services than necessary to save money, and will also look for ways to expel-refer high-risk ones, and recruit low-risk ones (if they can be billed for being “outside the capitation”).
The outsourcing of well-defined procedures, quantified in number and appraised in their quality (waiting lists or diagnosis) is an option that has fewer problems, since there is no asymmetry of information due to its clear measurability and controllability. Their problem lies in the possibility of weakening the public sector, if these externalizations are significant in number and maintained or increasing over time, since they end up being an excuse for not investing in the development of the services necessary for the population from public centers.
Public provision, supported by non-profit entities or professional organizations, seems to be a good alternative to models that fuel profit maximization. Furthermore, when we create institutional environments where profit is moderated or modulated, we strengthen professional and civic values that reinforce appropriate, compassionate and quality service delivery.
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