Comparative Summary
Comparative Summary
Rebecca Ingli
October 1, 2012
Comparative Summary Health care is a provision of for profit, not-for-profit, and government organizations. Health care consists of insurers, suppliers, and providers. Each organization has a financial structure, polices, and management practices prevalent in the financial environment. Effective financial management is more difficult in health care than any other industry.
Entities
For-profit, not-for-profit and government facilities exist throughout the country. People Incorporated Mental Health Services in the Minneapolis, Minnesota, is a not-for-profit entity that offers a spectrum of services to mental illness patients (People Incorporated, 2011). Redwing Chiropractic Clinic in Redwing, Minnesota, is a for-profit clinic that specializes in treating conditions, including spine, and menstrual pain (Redwing Chiropractic Clinic, 2011). The Veterans Administration Health Care System (VAHCS) is a government facility operating from Minneapolis, Minnesota. The VAHCS provides care to America’s Veteran population (United States Department of Veterans Affairs, 2011).
Financial Structure The type of provider and the size of the organization affect the structure and size of the health care organization’s finance department. Businesses and health service organizations have a primary role. The plan is to use and acquire resources to increase and maximize efficiency and worth of the organization. The financial structure must meet the basic requirements of the health care organizations finance activities. The finance activities include budgeting, planning, financial reporting, capital investment decisions, financing decisions, working capital management, contract management, and financial risk management (Gapenski, 2008). Large health care organizations, such as the Veterans Health Administration generally structure the finance department with a chief financial officer (CFO) or vice-president.
Rebecca Ingli
October 1, 2012
Comparative Summary Health care is a provision of for profit, not-for-profit, and government organizations. Health care consists of insurers, suppliers, and providers. Each organization has a financial structure, polices, and management practices prevalent in the financial environment. Effective financial management is more difficult in health care than any other industry.
Entities
For-profit, not-for-profit and government facilities exist throughout the country. People Incorporated Mental Health Services in the Minneapolis, Minnesota, is a not-for-profit entity that offers a spectrum of services to mental illness patients (People Incorporated, 2011). Redwing Chiropractic Clinic in Redwing, Minnesota, is a for-profit clinic that specializes in treating conditions, including spine, and menstrual pain (Redwing Chiropractic Clinic, 2011). The Veterans Administration Health Care System (VAHCS) is a government facility operating from Minneapolis, Minnesota. The VAHCS provides care to America’s Veteran population (United States Department of Veterans Affairs, 2011).
Financial Structure The type of provider and the size of the organization affect the structure and size of the health care organization’s finance department. Businesses and health service organizations have a primary role. The plan is to use and acquire resources to increase and maximize efficiency and worth of the organization. The financial structure must meet the basic requirements of the health care organizations finance activities. The finance activities include budgeting, planning, financial reporting, capital investment decisions, financing decisions, working capital management, contract management, and financial risk management (Gapenski, 2008). Large health care organizations, such as the Veterans Health Administration generally structure the finance department with a chief financial officer (CFO) or vice-president.
References: Finkler, S.A. & Ward, D.M. (2006). Accounting Fundamentals for Health Care Management. Jones and Bartlett Publishers, Inc Gapenski, L Gorin, S. H. (2011). The Affordable Care Act: Background and Analysis. Health and Social Work 36 (2), 83-86. Horwitz, J.R. (2005). Making Profits and Providing Care: Comparing Nonprofit, For-Profit, and Government Hospitals People Incorporated. (2011). Securing Independence for People with Mental Illness. Retrieved from http:// www.peopleincorporated.org Redwing Chiropractic Clinic United States Department of Veterans Affairs. (2011). National Center for Veterans Analysis and Statistics. Retrieved from http://www.va.gov/vetdata/