Here in the case of a health care organization, the licensing allows the professionals and gives them a legal right to work in the industry and in the profession (Pozgar, 2007).
Accreditation has been expressed as a voluntary organization which provides the institution with an authorization which is based on the predetermined standards and the measurement criteria (CS & MSN, 2010).
The GDP of the country has been directly influenced by the cost of health care in the country. There are several different aspects like the fee for service, the taxation that is set for the support and development of Medicare and Medicaid services and the managed care for all. There have been several discussions and arguments that the health care is not driven by the customers and is mainly by the employers.
Private organizations tend to be very strict about their functioning with very little or no transparency in the operations and with little or no accountability to the public. The accreditation process for all companies is relatively much more on the outcomes than the structure and the process that is being used by the organizations. The state and federal licensing have a relatively more transparent process and the working of the company is relatively much more available for the general public to see as compared to that of the private organizations. The private bodies also have the ability to make any changes without providing any kind of notification to the public while the state or federal bodies need to notify all changes to the public. The private bodies are relatively able to manage their finances well while the states of federal are dependent on the funding and the sponsors to a great extent.