Health Care Organizations and Budgeting
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Bring to mind a wide range of healthcare organizations, such as a long-term care facility, large for-profit hospital, physicians' practice, VA hospital, or state-run clinic. Consider how budgeting would be influenced depending on an organization's sources of funding. How do the purposes or uses of a budget vary according to the kind of healthcare organization it is?
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Solution Summary
Different types of organizations utilize different funding systems and budgeting in order to accomplish their purpose. As such, the source of funding has a high influence of the organization's operations and services. This solution focuses on the various considerations on this topic.
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Health care organizations rely on funds in order to operate. The source of funding may vary from one organization to the next. There are profit, not for profit, and government health care organizations. Basically, all three offer the same basic services such as hiring doctors, nurses, labs, etc. The difference is in the approach that they use in order to deliver services and increase their profit margins. For profit organizations have to please not only their customers but also their stockholders/investors. The stockholders have a strong say in decisions that are made and that will provide them with good return on their investments. In other words, the culture in for profit organizations is more business driven, while in others it's more service driven, although they both ultimately rely on providing quality service to exist. As such, the ...
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- BA, Brooklyn College
- MBA/HCM, Phoenix University
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