Healthcare Institutions
Financial Environments Paper
Healthcare institutions: Nonprofit, for-profit, and government-administered
"Three types of entities -- nonprofit, for-profit, and government" exist within the American healthcare industry (Horowitz 2015). All available evidence indicates that this status affects the business model choice of all of these institutions. "In this econometric analysis of American Hospital Association data for every U.S. urban, acute care hospital (1988 -- 2000), more than thirty services were categorized as relatively profitable, unprofitable, or variable. For-profits are most likely to offer relatively profitable medical services; government hospitals are most likely to offer relatively unprofitable services; nonprofits often fall in the middle" (Horowitz 2015). Thus it is important to understand how these various organizations view profitability, given its material effect upon how they allocate resources and impact patient care.
Not-for-profit healthcare institutions like the Mayo Clinic are dependent upon donors, government funding, foundations, and also from revenue from activities. Unlike for-profit institutions they are not beholden to shareholders to make a profit, however, and their mission statements primarily define their roles as aiding patients through care, research, the training of doctors or other services. The Mayo Clinic also runs a successful website which provides online, peer-reviewed, empirically validated research on a variety of health conditions and treatments. It has a service-based function which is rooted in serving patient needs and also extends to the wider community.
A number of institutions advertise their non-profit status on their websites. For example, Aurora Healthcare advertises that because it provides "health care to the
Nonprofit status exempts the organization from income, sales, and some property taxes as well as makes it eligible to receive donations and government grants; in exchange it demands that serving others vs. profit-making is the focus of the institution. Aurora states that "we are the state's largest provider of charity care providing more than $25 million in community outreach and free preventive services" ("Aurora's role as a not-for-profit organization," 2015). Not-for profit hospitals are more likely to treat less profitable patients, such as Medicaid and Medicare recipients and are more likely to offer less profitable services. For example, for-profit institutions are less likely to offer psychiatric care (which is less profitable and less likely to be reimbursed) versus open heart surgery, which is extremely profitable (Horowitz 2015).
The distinction between nonprofit and for-profit is not confined to hospitals themselves but can also be seen in the distinctions between insurance companies. For example, Kaiser Permanente, a health insurance company, is another popular not-for-profit organization and is ranked number one in a survey of best integrated providers according to Consumer Reports. Kaiser is both an insurance provider as well as a research organization and is the author of a number of reports and informative works on its website, offering information for healthcare consumers. This model of trust and commitment to disseminating information to the public may be why overall, not-for-profit entities fared better in the service than their for-profit counterparts in a survey of satisfaction of healthcare insurance companies (New 2012).
Critics allege because the critical difference between for-profit and not-for-profit entities is that for-profit hospitals are beholden to shareholders and have a responsibility to make a profit that the for-profit entities are less likely to put patient needs first. "For-profit hospitals are more likely…
Public Administration: Case Study on Health Care Institution This work will examine public administration theories and concepts along with individuals that have contributed to the field of public administration while simultaneously reviewing the case study set out for examination in this work in writing. The case study relates a hospital matter in which the hospital has received $250,000 funding which is not earmarked resulting in several key administrative personnel in the
Health Care Quality Management as it Applies to Managed Care In the current age of improved answerability for quality of care, every healthcare expert should be conversant in the theory and paraphernalia of quality management) Quality Management-QM is an all-embracing attitude that pervades the management infrastructure, rules and customs of an establishment. It characteristically comprises of five fundamental doctrines -- undivided attention on the customer/supplier relationships; a stress on functional and
Stated to be barriers in the current environment and responsible for the reporting that is inadequate in relation to medical errors are: Lack of a common understanding about errors among health care professionals Physicians generally think of errors as individual that resulted from patient morbidity or mortality. Physicians report errors in medical records that have in turn been ignored by researchers. Interestingly errors in medication occur in almost 1 of every 5 doses
" (2004, p.159) Activities have included: (1) Development and promotion of industry-wide standards; (2) Funding of research for investigation of the impact of IT on quality; (3) Provision of incentives that provide encouragement of investment in IT; (4) Giving grants to investors in IT; and (5) Development of strategies to improve the flow of information across providers. (Report to Congress, June, 2004, p.159) Stated additionally in the Report to Congress is that there are multiple
EMR Systems Benefits of Research-based EMR Systems Research is an investigation conducted on the sources and study materials for the researcher to establish facts and offer new conclusions on a given subject matter. Currently, research is the main factor considered before an organization implements an idea on the product service to be offered to the customers. In this case, it is important for the health care institutions to utilize research concerning
Healthcare We can compare the healthcare workplace to what is seen by a person when he/she looks through a kaleidoscope: since there are numerous different patterns that appear as the moments pass by. The shortage of nurses which has been publicized widely and the high turnover rates amongst the nurses are some of the unwanted patterns which have occurred. The dependence of healthcare institutions on the nurse-managers for the retention and
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now