...Hospital Corporation of America and the Age of Affordable Healthcare The Affordable Healthcare Act has led to many more Americans having access to insurance and healthcare options. It has assisted with the high cost of healthcare by simply putting a cap on out of pocket expenses. It has allowed those small businesses to implement healthcare insurance for their employees and offers incentives through tax credit. Many hospitals are seeing growth from this legislation being passed. Hospital Corporation of America (HCA) is a system of hospitals based in Nashville, Tennessee. They have hospitals spread throughout the nation. They are seeing profits and room for growth because of the Affordable Healthcare Act. According to Stynes (2014) HCA reported a profit of $518 million with last year’s profits only reaching $365 million. They are seeing more insured younger Americans due to this act. This is not just causing profits to rise but it’s also causing a need for HCA to grow and reach this market. Since it’s a younger market they are mostly focused on acute care because this generation isn’t seeking long term care. In the past this group may not have gone to the doctor as often for preventative care, because lack of insurance and high out of pocket expenses. HCA’s employment handbook states their mission and values, “Above all else, we are committed to the care and improvement of human life. In recognition of this commitment, we will strive to deliver high quality, cost effective...
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...CASE STUDY – EFFECTIVE SELECTION The conman of St Luke’s Hospital “Sydney’s Anglican establishment has been scandalised by the discovery that the man chosen to run its prestigious St Luke’s hospital complex for the past year led a double life. John Frederick Bundy hoodwinked the 13 member hospital Board – which includes some of the most prominent names in Sydney medicine and business – into believing that he was a successful businessman, a university graduate, CPA and a man with a stable family life. In fact, none of this was true, and when the Board belatedly found out who the real John Bundy was, he resigned on the spot. The bespectacled, apparently respectable 45-year-old businessman who entrusted with the care of the 200-odd patients at St Luke’s in Potts Point and its adjacent nursing home turned out to be a man with a history of business failure, a high-living pilot and part-time racing car driver who was two-timing his wife in Melbourne with a mistress. Not only that, a routine check with a credit agency would have revealed that Bundy and his legal wife had court judgements for more than $6000 worth of debts outstanding against them, some involving the operation of a business in the Melbourne suburb of Hawthorn, known as the Hotham City Diner and Bar, and others relating to his red-striped Beechcraft Duke, a six-seater twin-engine executive plane. When Bundy told the Board in 1990 that he had ‘an impressive background in general management’ he...
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...Executive Summary HCA holdings is a Nashville based hospital that has grown from a solitary hospital in the 1960’s to a company that is comprised of approximately 163 hospitals, 109 surgery centers, 5 psychiatric hospitals and 1 rehabilitation hospital. In this expansive corporation, it can utilize different strategies and tactics to overcome the recent recession. Recent Economic Trends Influencing the Business During the past few years, an increasing number of patients are uninsured due to loss of jobs, the recession, and “some employers have stopped offering health insurance, while others are passing along more of the cost to their employees.... As a result, some workers are abandoning their employer's plans because the premiums have become too expensive” (Christie, 2011, para. 7). The increasing uninsured patient accounts, intense competition and cost containment measures threatens Hospital Corporation of America. With more people without insurance it gives way to increased uninsured accounts that are at risk of not being paid. Patients understand that if they go to the emergency room, they will be seen and testing will be done without the need to check insurance or get authorizations. The “percentage of young adults ages 18 to 24 who were insured increased to 72.8% in 2010 from 70.7% in 2009” (Christie, 2011, para. 15). This is the only age group that had an increase in insurance coverage and this is due to the Obama administration's health care reform that allows...
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... This paper will also address the policies that make this financial environment unique and identify which financial management practices are prevalent in the financial environment. This paper will also explain why effective financial management is more difficult in health care than in other industries. Entities FP, NFP, and government facilities exist throughout the country. This paper identifies the first entity FP healthcare organization JFK Medical Center. The second entity is Naples Community Hospital (NCH), a NFP healthcare organization, and the third entity is the Veterans Administration, a government funded facility. JFK Medical Center is a 460-bed acute care medical/ surgical hospital specializing in cardiovascular care, oncology services, neuroscience, bariatric, and orthopedics. It is located at the heart of West Palm Beach, Florida (“Jfk Medical Center”, n.d.). The NCH Healthcare system, a NFP organization, has multiple facilities consisting of two hospitals, dozens of medical facilities throughout Collier County and...
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...Week-4 Case Study Hospital Corporation of America SBNM 5311 Professor: Dr. Kasthuri Henry Abstract The financial position of The Hospital Corporation from 1972-1981 was analyzed and compared with others in the industry through a careful examination of some critical ratios, along with competitors performances, we determined areas of concern for the organization. To accomplish this, we utilized various competitor benchmarks and compared them to the company’s overall past performance to determine the projected funding needed for The Hospital Corporation. From the analysis, the problems the organization is experiencing were identified and solutions are provided. From this, a recommended course of action for The Hospital Corporation was provided in an attempt to correct the company’s current trend. Keywords: Analysis, Ratio, Performance, Forecast, Competitor, Purchase, Capital Identify problem Hospital Corporation has performed well over the past few years and has seen substantial growth. The growth it is experiencing has allowed the organization to have a total of 49,866 beds in service in 1981 producing $48,259 in revenue per bed. It grew from 188 hospitals in 1980 to 349 hospitals in service in 1981 producing 6.8 million dollars in revenue per location. The growth that it has seen has been profitable but compared to organizations like Humana it has not seen the same success. Humana has been able to produce better profitability...
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...Financial Environment For-profit organizations must make a return on investments and services rendered. They must meet their obligations and must satisfy private investors and shareholders (Finkler, & Ward, 2006). With a return on investment being one of the top priorities, motivation can be fostered to provide high efficiency with a superior product. In this case, a superior service. Mountain Star Healthcare Mountain Star facilities are owned and operated by the larger parent company Hospital Corporation of America (HCA). This private company began trading shares in the stock exchange in 2011 (Hospital Corporation of America, 2013). Their goal is to approach service expansions with the patient put first. Mountain Star is placing conveniently located outpatient clinics in the surrounding communities. These individual clinics might include imaging, surgery, and physician clinics (Mountain View Hospital, 2013). Unique Financial Policies For-profit organizations are treated as private corporations or a financial variant. Because they are private entities, they are subject to all...
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...practices. According to Gapenski (2008), hospitals are classified by ownership as private not-for-profit, investor owned, and governmental. The statistical data show approximately 60 percents of all hospitals are private not-for-profit hospitals, approximately 25 percents consisted of governmental hospitals, and approximately 15 percents are investor owned hospitals. Main difference between not-for-profit and for-profit hospitals are not-for-profit hospitals received numerous tax benefits such as tax exemption from federal, state, and local government income taxes because hospital serves as a charitable purpose and provide benefits to the community in general. The hospital sector in the United States includes three different types of ownership forms. Not-for-profit hospitals are the most common type but for-profit and government hospitals also play substantial roles. Arnold Palmer Hospital for Children is not-for-profit hospital dedicated to the providing a shelter of hope and healing to the children. According to Orlando Health (2011), “Arnold Palmer Hospital is a 158-bed pediatric hospital located in Orlando, Florida.” Orlando Health is dedicated to offering community services by providing high quality health care. Arnold Palmer Hospital for Children included about 158-bed pediatric hospital. Hospital Corporation of America is the largest investor owned hospital in the world. According to Hospital Corporation of America (2011), this leading provider of healthcare...
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...External and Internal Environmental Analysis George Benelli University of Phoenix Strategic Planning & Implementation STR/581 Lloyd Krieger June 27, 2015 External and Internal Environmental Analysis Introduction The University of Miami Hospital (UMH) is a 560-bed academic acute care center, located just a few miles north of downtown Miami. The hospital was acquired by the University of Miami in 2008; since then, it has become the center of healthcare excellence in South Florida. As any new business, the organization is constantly searching for opportunities to improve its physical infrastructure and financial status. In this paper we will analyze the external and internal environmental factors that directly or indirectly affect the overall operations of the hospital. We will also describe its competitive position as well as the hospital’s organizational structure. External Factors UMH mission is to provide healthcare services to the community it serves, as well as to being a point of interest for international patients. As most hospitals, it is aggressively influenced by the environment in which it operates. “A host of external factors influence a firm’s choice of direction and action and, ultimately, its organizational structure and internal processes.” (Pearce, pg.102). These external factors are divided in three major categories: remote, industrial, and international. Remote. These factors are independent from the institution’s operating situations...
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...Johnson Foundation Commission to Build a Healthier America Wilder Research Wilder Research Wilder Research Report prepared for the RWJF Commission to Build a Healthier America by Paul W. Mattessich, Ph.D. Wilder Research Saint Paul, Minnesota Ela J. Rausch, M.P . .P Federal Reserve Bank of Minneapolis Minneapolis, Minnesota With support from the Robert Wood Johnson Foundation June 2013 Creating Healthy Communities Cross-sector partnerships are sparking widespread action to improve community health COATESVILLE , PA SEATTLE, WA Access to healthy foods Access to preventative care and healthy housing LOS ANGELES , CA Quality early child care and education CHICAGO, IL Data and evidence to build health into all policies and practices MIAMI , FL Opportunities for physical activity and healthy living health community development • community development finance • community planning • early child care/education • human services • housing Introduction “ Building a healthier America is feasible in years, not decades, if we collaborate and act on what is making a difference.” —Robert Wood Johnson Foundation In 2008, the Robert Wood Johnson Foundation convened a commission of nonpartisan leaders to identify opportunities to improve the health of all Americans by creating environments that protect and actively promote health. Their report, Beyond Health Care: New Directions to a Healthier America, included 10 recommendations for improving the...
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...Company Profile Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. The Reconstructive segment offers orthopaedic reconstructive (hip and knee) and trauma implant systems, as well as other related products. The MedSurg segment provides surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling and emergency medical equipment, reprocessed and remanufactured medical devices, and other medical device products. The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems, and other related products. The company sells its products through local dealers and direct sales force to doctors, hospitals, and other healthcare facilities, as well as through third-party dealers and distributors primarily in the United States, Ireland, Germany, France, Switzerland, the United Kingdom, Japan, Canada, the Pacific region, and Latin America. Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan. Stryker Corporation is a leading maker of specialty surgical and medical product based in Kalamazoo, Michigan. although not yet the household name, Stryker is one of the most consistent profitable growth company in America. In 2003, Stryker posted record sales of 3.6 Billion. After John Brown became chairman in 1977, Stryker achieved 20 percent or more annual...
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...Hospital Corporation of America vs. Tenet Healthcare Heather Darling 22-BA-5080-002 Summer Semester, 2014 SUMMARY Hospital Corporation of America as of now is the biggest player in the hospital care sector. Headquarter in Nashville, TN HCA has been very aggressive in acquisitions and developing all around the United States and in England. They are very quick to turn down a deal with another hospital if they believe that it will not be a profitable deal. One of the things that HCA has done to improve profits that not many other companies have done is to send customers that are not profitable to neighboring public health hospitals. This has increased their profits as well as their wait times in emergency rooms. On the other hand, Tenet Healthcare Corporation is a competitor to HCA, but has been slower to develop in the profitable ways of HCA. Tenet has taken a diversification approach recently in the urgent care business. They have recently opened 23 urgent care facilities, the first company in the hospital sector to do so. Many competitors, including HCA, are waiting to see how TCA does before also going this route. As of now Tenet owns the market in urgent care facilities but as profits increase, other hospital companies may go this route as well. The deal Tenet made with Vanguard is the biggest transaction Tenet has made and signals a shift from the company's problems over the past 10 years. Several Tenet-owned facilities underwent investigations in the early 2000s...
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...Chapter 3 The Evolution of Health Services in the United States Learning Objectives To discover historical developments that have shaped the nature of the US health care delivery system To evaluate why the system has been resistant to national health insurance reforms To explore developments associated with the corporatization of health care To speculate on whether the era of socialized medicine has dawned in the United States “Where’s the market?” 81 26501_CH03_FINAL.indd 81 7/27/11 10:31:29 AM 82 CHAPTER 3 The Evolution of Health Services in the United States Introduction The health care delivery system of the United States evolved quite differently from the systems in Europe. American values and the social, political, and economic antecedents on which the US system is based have led to the formation of a unique system of health care delivery, as described in Chapter 1. This chapter discusses how these forces have been instrumental in shaping the current structure of medical services and how they are likely to shape its future. The evolutionary changes discussed here illustrate the American beliefs and values (discussed in Chapter 2) in action, within the context of broad social, political, and economic changes. Because social, political, and economic contexts are not static, their shifting influences lend a certain dynamism to the health care delivery system. Conversely, beliefs and values remain relatively stable over time. Consequently, in the American health care...
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...officials almost direction the presidents actions in government and business * They wanted the government to have no control over businesses and for the government to help guide businesses along the path to profits * Supreme court ruling on Adkins v CHildrens Hospital in 1923 declared that under 19th amendment, women no longer deserved special protection in the workplace * Corporations under president harding could once again expand without worry of the anti trust laws * Interstate commerce commission came to be dominated by men who were sympathetic to the manages of the railroads The Aftermath of War * Wartime government controls of the government were dismantled * Esch-cummins transportation act of 1920, congress returned the railroads to private management * Merchant Marine Act of 1915 , authorized American shipping board to dispose the wartime fleet of 1500 vessels at extremely low prices * La follette seamans act of 1915, American shipping could not thrive in competition with foreigners who all too often provided their crews with wretched food and starvation wages * Labor now depended on government support * 1921, congress created the veterans bureau to operate hospitals and provide support for the disabled * The American legion was created in 1919...
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...Then it will be explained why the effective financial management is more difficult in health care than in other industries. First we will talk about is the Health Management Associates, Inc. that was founded in 1977. The Health Management Associates was founded to own, also leased and then managed the hospitals throughout the United States. As of the HMA, they operate about fifty nine hospitals in fifteen states with approximately eighty eight hundred licensed beds. Company employs around thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians. HMA is a for profit organization, with that the profit organization is with the three key features of investor-owned corporations. The owners aka known as the stockholders of the business are well defined and they exercise control of the firm by voting for directors. The residual earnings of the business belong to the owners or the stake holders. Management is then responsible only to the stockholders for the profitability of the firm. Lastly, the investor-owned corporations are subject to taxation at the local, state, and federal levels. HMA vision states will lead the hospital industry...
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...providers, assisting with credentialing, and HIPAA lead for Children’s Medical Center Health plan and accounts receivable for Vox Technologies Member Service Representative June 2014 to August 2014 Atterro ▪ 2208 N. State Hwy 121, Suite 100, Bedford, TX 76010 Provide health benefit coverage, claim status, & payment processing for Kentucky Health Cooperative at CGI Technologies Processor September 2013 to June 2014 Medical Center Labs ▪ 2115 E. Division Street, Arlington, TX 76011 Data Entry, customer service and processing blood samples Reservation Team Member July 2013 to September 2013 TelVista ▪ 1607 LBJ Freeway, Dallas, TX Incoming calls regarding reservation setup, changes, questions and payments for Virgin America airlines Client Service Representative II September 2008 to June 2013 Quest Diagnostics Inc. ▪ 4770 Regent Boulevard, Irving, TX Incoming/Outgoing calls, test information, adding tests, research problems, data entry, validate test results, releasing patient health information through HIPAA guidelines to...
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