February 24, 2014
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 ...view middle of the document...
The outpatient services offered are rehabilitation, walk-in centers, home care, and more. The two hospitals offer inpatient services and have a total of 715 beds. It offers extensive inpatient services, which includes medical, surgical, cardiac, rehabilitative, obstetric, pediatric, oncology, psychiatric, emergency treatment, and more. The system has an alliance of about 650 physicians and has about 3,000 employees. It has served more than 30,000 patients in the two hospitals in the past year ("NCH Healthcare System", 2014).
Shi (2012) has noted the Veterans Health Administration (VHA) was formerly known as the Veterans Administration. It is an executive department of the US government. VHA is the health services branch of the VA and it functions as the largest incorporated health services system in the United States. VHA has about 153 hospitals, 956 outpatient clinics, and a variety of other facilities. The VHA provides care to almost 6 million veterans to more than 1400 sites throughout the nation (Shi, 2012). It was the VA’s original mission to treat veterans with war related injuries and helps rehabilitate veterans with war-related disabilities. The VA expanded the mission to care for non-service-related conditions because of poor veterans accessing care through the VA increased (Shi, 2012).
Financial Structure and Unique Policies
The “Businessdictionary.com” (2014) website defined financial structure as composition of a variety of financing that an organization plans to use, and acquire to increase the worth of the organization and its efficiency.
JFK Medical Center is part of one of the biggest FP chains, Hospital Corporations of America (HCA). HCA is owned by private investor groups to include affiliates of Bain Capital, Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity, and HCA founder Dr. Thomas F. Frist, Jr. HCA is comprised of locally managed facilities that include approximately 165 hospitals and 115 freestanding surgery centers in 20 states and England (“Hca hospital corporations of America”, 2014). FP hospitals can be owned by individuals, partnerships, or corporations. They are managed for the sole purpose of revenue with financial benefit to the entity that owns the organization. FP hospitals are more aggressive in pricing services to maximize profits and are less likely to provide charity care to indigents, or to promote immunization, prenatal care, and other uncompensated services (Getzen, 2007).
Shi (2012) noted, there are assumptions from many people that non-profit organizations are simply driven by the mission to meet the health care needs of patients regardless of his or her ability to pay. Another assumption is that such corporations do not make a profit, but it is not so. For a NFP business to stay afloat it has to make a profit or else it will go bankrupt. Shi (2012) further added the Internal Revenue Code grants tax-exempt status to non-profit organizations from federal, state, and local...