Summarize the financial environments of the three healthcare entities listed below:
1. New York University Medical Center - (For-Profit)
2. Mount Sinai Hospital (NY) - (Not-For-Profit)
3. North Shore VA Medical Center (Government)
In your response, include the following:
A. Description of the financial structure
B. Specific policies and procedures unique to the financial environment
C. Financial management practices prevalent in the financial environment
D. Explain why effective financial management is more difficult in healthcare than in other industries
The three healthcare entities ( for-profit, not-for-profit, and government) operate very differently according to financial environments and tax status.
1. For-Profit Healthcare Entities:
For-profit healthcare entities, such as New York University Medical Center, purpose is to return financial benefits to investors of the hospital. These hospitals are expected to have greater revenues then expenses ( or more money coming into the hospital then being spent) so that investors will earn profit. For-profit hospitals tend to take patients with the best insurance plans that pay out the highest ( verse medicaid or offering financial assistance programs).
For-profit hospitals are different then other entities because the investors ( or stockholders) exercise control of the healthcare entity by voting for directors and managers who in turn make the financial decisions. These directors and managers are only responsible to the owners of the hospital for making profit. For-profit, or investor owned, entities are also subject to paying taxes at the local, state, and federal level as well. For-profit healthcare entities are also less likely to offer services that do not have a return on investment such as psychiatric care (J.Horwitz & A.Nichols, 2011 ).
2. Non-For-Profit Healthcare Entities:
Not-for-profit healthcare entities must ...
This summary will give you insight into how three different types of healthcare entities ( For-Profit, Not-For-Profit, and Governmental) operate financially. Also included are common financial management practices, financial structures, and helpful tips and sources to expand your research.