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Financial Environments Worksheet

Identify three specific examples of entities with for-profit, not-for-profit, and government financial environments in the health care industry. Compare the similarities and differences between the for-profit, not-for-profit, and government financial environments.

| |For-Profit Organizations |Not-for-Profit Organizations |Government Organizations |
|Specific|1. HCA Hospitals |1. Texas Children’s Hospital |1. Veterans Affairs |
|Examples|2. Methodist Hospital |2. Memorial - Hermann |2. MD Anderson |
| |3. North Cypress |3. CHI |3. Ben-Taub |
| |(physician-owned) | | |
|Similari|They all have goals and missions, which are well defined (Becker, 2014). |
|ties |They all must satisfy the objectives of their stakeholders (Horwitz, 2005) |
|between |Each has a board for management of the organization. |
|Environm|Performance measurement is vital |
|ents |They are all providing a medical service to the consumer |
|Differen|1. Pay property and income tax |1. Do not answer to shareholder |1. Funding is from the State or Federal |
|ces |(Becker, 2014.) |2. More likely to offer unprofitable |Government, some from Counties |
|between |2. Can raise capital |care such as psychiatric emergency |2. Provides care free of charge from |
|Environm|3. “more likely to stop offering |care and substance abuse treatment |funding provided by government |
|ents |money-losing services” (Horwitz, |(Becker, 2014). |3. There can be a wait list for services|
| |2005). |3. Less likely to offer home health | |
| | |services (Horwitz, 2005). | |

| | | |

References

Becker, A. (2014, April 25). How different are for-proft and nonprofit hospitals?. CT Mirror. Retrieved from http://ctmirror.org/2014/04/25/how-different-are-for-proft-and-nonprofit-hospitals/

Horwitz, J.R. (2005, May). Making Profits and Providing Care: Comparing Nonprofit, For-Profit, And Government Hospitals. HleahtAffairs, 24(3), 790-801.

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