...Comparative Summary HCS/577 November 23, 2015 SANDRA DI PIETRO Today’s health care environment is in a state of flux. Many health care organizations are working hard to implement and deal with the new provisions established in the Affordable Care Act of 2010. The three financial environments must adjust the way they deliver health care services to accommodate these new provisions. For-profit organizations, not-for-profit organizations, and government organizations have to change many of their financial systems to operate in today’s health care industry. Throughout this paper I will explore three organizations from these different financial environments. Universal Health Services Incorporated is a for-profit health care organization that will be explored in detail. The Mayo clinic is a not-for-profit health care organization that will be discussed. The last health care organization is from the government environment and I will explore the U.S Department of Veteran Affairs. All of these health care organizations have different financial structures which will be explained throughout this paper. The policies and financial management of each organization will be explored to show how each financial environment is reflected within their respective organizations. Finally, I will describe why effective financial management is more difficult in health care than any other industry. The for-profit health care organization I will discuss is Universal Health Services...
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...Comparative Summary HCS/577 July 28, 2014 Comparative Summary Introduction The financial environment of the different types of health care entities is defined by the classification of ownership. The three categories of ownership are for-profit, not-for-profit, and government owned. In the following paragraphs, I will identify one entity from each of the three categories of ownership and describe the financial structure in their financial environment. I will identify the policies unique to each financial environment as well as financial management practices prevalent in the financial environment. I will also explain why effective financial management is more difficult in health care than in other industries. Entities Piedmont Medical Center is a for-profit acute care hospital located in Rock Hill, South Carolina. It is an entity with the Tenet Healthcare Corporation that offers a broad range of surgical and diagnostic services that include advanced heart and stroke care, women and children services, and a 24-hour emergency room. It has received recognition for its cardiac care, cancer care, diabetes management, orthopedic care, stroke care, and surgical care. (Piedmont Medical Center, 2014). Greenville Memorial Hospital is a not-for-profit acute care hospital also located in Greenville, South Carolina. It is an academic teaching hospital with a 24-hour emergency room that provides inpatient and outpatient services for the immediate community as well as a referral center...
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...Comparative Summary Cynthia Deeble HCS/577 September 8, 2014 Sandra Di Pietro Comparative Summary Currently in the United States the Medicaid program is the third largest source of health insurance for powerless populations. The Medicaid program was introduced into law in nineteen sixty five, which is known as the Social Security Amendments Act. Before this law was passed, health care services for the under privileged were provided through several programs sponsored by the state and local governments, charities and community hospitals (Briggs, 2013). In the first program medical providers received payments, for medical services from the state on behalf of individuals who were receiving public assistance. The medical assistance program for the aged was created in nineteen sixty. This program was designed to help elderly individuals who didn’t qualify for public assistance, but was in need of assistance with medical expenses. The Medicaid program provides three types of medical protection coverage which include health insurance for low income families with children, and individuals with disabilities. Also offers long-term care for older American’s along with individuals who are considered disabled. The last coverage that was offered was a supplemental coverage for low-income Medicare beneficiaries whose services were not covered under their current plan like outpatient treatments, and prescription drugs (Briggs, 2013). Medicaid is a joint federal and state program...
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...Comparative Summary HCS/577 Comparative Summary Financial environments vary from one entity to the next. Although most health care organization might be viewed as simply providing health care, however they vary in the way finance is handled and is reported. For example there are health care entities that are known as for-profit where there is a major focus on bringing in revenue to make a profit and some as not-for-profit where any revenues that come into the entity get reinvested in the organization and the major focus is on the community. Also entities that belong to the government will have many differences in the way financial statements are reported. Some examples include health care providers such as urban hospitals that are for-profit, rural hospitals that are not-for-profit and government entity such as military hospitals. These entities their own financial structures and have policies that are unique to each. Also financial managers are under a lot of pressure to prevail in such competitive field, so it is important to have a management practice that is prevalent as financial management in health care are deemed difficult. The Financial Structure Medical landscape continues to change in many ways and it has led to changes such as the roles and structure of health care provider. Not-for-profit hospitals usually take patients whether or not they can afford to pay for treatments. For-profit hospitals however will not treat a patient unless they are covered by an...
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...Comparative Summary M W HCS/577 February 24, 2014 Comparative Summary According to Finkler & Ward (2006), “health care is an enormous part of the US economy, representing 17% of all personal consumption expenditures annually” (p. 7). The health care industry has multiple components, diverse types of providers, and many different types of health care organizations playing an integral part in the delivery of health care. Health care is provided by different health care financial environment namely for-profit organization (FP), not-for-profit organizations (NFP), and governmental organizations (Finkler & Ward, 2006). This paper will identify one entity from each health care financial environment identified from the previous week’s worksheet and will describe the financial structure of each financial environment. 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...
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...Comparative Summary The types of health care environments that are available for patients carry many different financial obligations. There is a wide range of financial situations in healthcare. The Veterans Hospital Administration (VHA) usually requires no payment for veterans. Hospitals are a varied mix due to the patient’s insurance and payment options. Even with an excellent insurance plan, many patient, find they pay a significant co-payment along with insurance. With a surgical procedure, they may be paying anesthesia, x-ray, the physician, the surgical suite and the hospital stay. Most people are fairly shocked at being billed by so many being with one visit. Assisted Living arrangements are strictly full pay and are not covered by any insurance plan. Entity from Each Health Care Financial Environment A for profit selected is the Assisted Living Centers. These are becoming more productive as adults are entering the age when they do not have the physical ability to care for themselves at their home. They may want more social interaction or may have lost their spouse and feel this is a better way of having a way of keeping up with their health issues. Often they want to be close to family and friends and an Assisted Living Center is created to be very hotel like living with a number of conveniences depending on the level of price. Hospitals are different level of financial structure but are most commonly not-for-profit. This is distinct from a non-profit in that...
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...Comparative Summary Financial statements and policies are important to all organization and in health care it is a measurement to reflect how well the organization is operating. This paper will look at 3 types of organizations: Nonprofit, for profit and government hospitals and examine the financial structures and the unique policies in each environment. It is important to understand the similarities and difference to fully grasp the significances and differences within the health care community. The first organization to examine is not for profit healthcare organizations. Not for profit organizations governed by a board of trustees and a required to comply with federal and local laws and regulations regarding charitable donations and fiscal compliance. There are three major organization that issue financial standards for not for profit organizations to follow regarding here financial status. The organizations are the Financial Accounting Standards Board (FASB), the American Institute of Certified Public Accountants (AICPA), and the U.S. Federal Office of Management and Budget (OMB) (Mercer, 1999). In order to maintain a not for profit status the organization must comply with the IRS reporting measures and provide. The rules with the IRS can be found under section 501(c)(3) of the Internal Revenue Code and is how an organization can be tax exempt. Beyond federal guidelines “many states require that contributions, gifts, grants, etc., and functional expenses be reported...
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...Comparative Summary University of Phoenix HCS/577 Charlotte Igo July 30, 2012 The Health care financial environment is the most common for- profit, not-for-profit, and also the government funding. In this paper, it will be identified that one entity of these health care financial environments. Also it will describe the financial structure of the financial environment. Along with identifying the policies unique to each of the financial environment, and also to identify the financial management practices prevalent in the financial environment. 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...
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...Comparative Summary Sukhwinder Kaur HCS/577 September 02, 2012 Adam Craft While of the entities have one singular purpose in mind, the delivery of quality health care services, the entities also are very different in many ways. In health care environments that are available for patients carry many financial requirements. The health care financial environment is the most common for-profit, non-profit and also the government. This paper will give a description of the financial structure is of each environment while looking at the policies are unique to each of the environments. This will be done while also looking at the dominant financial management practices are prevalent within the financial environments and why it is that effective financial management is so difficult inside the healthcare industry as opposed to other industries. Not for profit financial environment Not for profit financial environment can simply be identified by their name and that they have a no profit purpose. A prime example of a not for profit organization is St. Mary’s Hospital located in Wisconsin Serving South Central Wisconsin since 1912, St. Mary's Hospital offers a wide variety of health and wellness services ("St. Mary's Hospital", 2011). St. Mary's offers a full range of inpatient and outpatient treatment and diagnostic services in primary care and nearly all specialties. ...
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...Comparative Summary Sukhwinder Kaur HCS/577 September 02, 2012 Adam Craft While of the entities have one singular purpose in mind, the delivery of quality health care services, the entities also are very different in many ways. In health care environments that are available for patients carry many financial requirements. The health care financial environment is the most common for-profit, non-profit and also the government. This paper will give a description of the financial structure is of each environment while looking at the policies are unique to each of the environments. This will be done while also looking at the dominant financial management practices are prevalent within the financial environments and why it is that effective financial management is so difficult inside the healthcare industry as opposed to other industries. Not for profit financial environment Not for profit financial environment can simply be identified by their name and that they have a no profit purpose. A prime example of a not for profit organization is St. Mary’s Hospital located in Wisconsin Serving South Central Wisconsin since 1912, St. Mary's Hospital offers a wide variety of health and wellness services ("St. Mary's Hospital", 2011). St. Mary's offers a full range of inpatient and outpatient treatment and diagnostic services in primary care and nearly all specialties. ...
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...Comparative Summary The health care industry in the United States is big business in proportion to gross domestic product (GDP). Americans spend approximately two trillion dollars on health related expenditures (Baker, & Baker, 2013). The industry is expected to experience positive growth over the next two decades (Baker, & Baker, 2013). Coupled with this growth is the pressing need to control costs. This is especially so in government funded reimbursement programs, such as Medicaid and Medicare (Gapenski, (2008). As the American population ages, the demand for increasingly efficient health care organizations is essential to a positive outcome for the industry. Health care is one of the world’s most complex undertakings, there are innumerable processes at every level. For-profit 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...
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...Comparative Summary Teresa Fluker HCS/577 April 1, 2013 Robert Adams, MBA Three different financial environments exist within healthcare organizations. The three financial environments of healthcare organizations are for-profit, not-for-profit and governmental. The characteristics and services the organization provides determine the type of financial environment it is. This paper will describe each of the environments as well as discuss the policies, structure, and financial management of each. This paper will also attempt to explain why financial management is more difficult in healthcare organizations than in any other businesses. Similarities of Financial Environments While many differences exist among each financial environment, they are also similar in many ways as well. Each organization whether classified as for-profit, not-for-profit, or government has a mission and vision statement that defines the organization’s strategic plans. The mission and vision statement reminds the staff of the long-term goals and ensures they understood what is required to meet the healthcare demands of the public. Financial managers must understand the tax laws that are associated with each type of organization before any decisions regarding financing are made. For-profit (FP), not-for-profit (NP), and governmental environments have stakeholders who have a financial interest in the organization. Organizations depend on profits to invest in...
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...There are many different health care organizations that offer different medical services. Most of the health care organizations are profit, government, or nonprofit organizations. Most health care organization consist of hospitals, home and nursing care, and health care agencies. As for the health care insurance and hospitals they too can be profit, nonprofit, and most organization and figure out and focus on making a profit or not. For profit, nonprofit, and government each have different financial environments. The financial environment are based upon the organization and its structures. The financial structures of the organizations affect accounting practices and other practices that go along with the financial environment. The purpose of this paper is to give a description of the financial structures of nonprofit, profit, government environments while stating the policies, practices of each environment. QUESTION 1 For profit organizations they are there to serve the public. For profit organizations are working with others to make a profit to meet their needs and objectives. For profit organization work to make revenue so they invest and they need to make a certain amount of profit to get and keep the things they need. They have to watch their balance and revenue and they are required to pay taxes that make effect there financial environment. Non for profit organizations are not required to make a profit. Not for profit organizations help and offer low cost to patients. In...
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...Introduction While all of the entities have one singular purpose in mind, the delivery of quality healthcare services, the entities also are very different in many ways. In this paper I will give a description of what the financial structure is of each environment while looking at the policies that are unique to each one of the environments. This will be done while also looking at the prevailing financial management practices that are prevalent within the financial environments and why it is that effective financial management is so difficult inside the healthcare industry as opposed to other industries. Not for profit financial environment Not for profit financial environment can simply be identified by their name and that they have a no profit motive. A prime example of a not for profit organization could be a clinic that is located in Marlin, Texas called the Falls Community Hospital and Clinic. This organization offers a cost effective health service to the residents of their town and is mandated to not make a profit but to only make enough yearly revenue to keep things running and to sustain the delivery of its health services. When dealing with the financial structure of a not for profit organization it is key to understand that the ownership interest is not able to be transferred. Keeping this fact in mind, the most logical accounting for this type of financial environment would be fund accounting. With this case the main...
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...With ROI, the marketing plan will use a threshold level of a return on investment before distributing the money to specific plans such as our plan to stop smoking. Because tobacco use is the leading cause of preventable death in the United States, and causes serious health issues, injuries, poor health, and deaths relate to tobacco use there are direct and indirect costs (Javitz, Swan, Zbikowski, Curry, McAfee, Decker, & Jack, 2004). For example, there are employers who officer benefits and programs to reduce the use of tobacco for employees. Cost-saving, cost-effective, ROI, and high-value can explain costs of health care benefits (Javitz, Swan, Zbikowski, Curry, McAfee, Decker, & ... Jack, 2004). Cost-saving entails reducing a health care cost, which is in result from program to quit smoking; unless surpassing the money involving the development of the no smoking intervention. Cost-effective includes a benefit is regarded as cost-effective when the net cost per unit of health generated is beneficial to other health services. ROI includes money lost or earned on an investment to the amount of money invested (Javitz, Swan, Zbikowski, Curry, McAfee, Decker, & ... Jack, 2004). ROI is a substitute for cost-effectiveness and the other way around. For instance, programs or plans such as quit smoking are cost-effective may not mean it generates positive ROI from the organizations standpoint. High-value includes a benefit that avoids an extensive amount of mortality...
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