Hcs 577 Comparative Summary
Comparative Summary
June 15, 2015
Maria Gaza
HCS/577
In the health care industry there are different types program sector organizations, which has its own uniqueness. The different sectors of health care are divided amongst the for-profit, non-profit, and government organizations because they all have a common goal but the financial aspect is the same when it comes to providing care to patients. Within the three types of organization types, the financial need is collected and reported differently due to the organization common goal, financial environment and community outlook. In my research, to give a clearer picture I have chosen an organization that represents each health care sectors environment and they are: Health …show more content…
Management Associates, Inc. which was founded in 1977.a for-profit organization. American Cancer Society (ASA) a not-for-profit organization and U.S. Department of Veterans Affairs as a government organization. In this paper, I will use these organizations to show comparison the structure of each financial environment, the uniqueness of each environment and the prevalent practices of each organization in their financial environment. Collectively by identifying this in each entity will explain why effective financial management is more difficult in health care than in other industries.
Health Management Associates In my research I found that HMA operates about fifty hospitals in many states with approximately eighty hundred licensed beds. “HMA employs approximately thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians” (Health Management Associates, 2011). HMA is known for profit organization and with the three key features of investor-owned corporations. First, the owners which are the stockholders of the business are well defined and they exercise control of the firm by voting for directors. Second, the residual earnings of HMA will belong to the owners, with this said management is responsible only to the stockholders for the profitability of the firm. Finally, investor-owned corporations are subject to taxation at the local, state, and federal levels (Gapenski, 2008). HMA vision states they will lead the hospital industry in quality, clinical metrics, patient outcomes, and customer service. HMA will achieve top tier in the hospital industry and customer satisfaction for their patients, their physicians, and their associates (Health Management Associates, 2011).
American Cancer Society
ACS is a non-profit corporation governed by a single Board of Directors that has came up with s policy, develops and approves an enterprise-wide strategic plan and related resource allocation, and is responsible for the action of the organization as a whole, with the help of regionally based volunteer boards (American Cancer Society Stewardship report).
While doing my research I have come across how ACS has used the fund that has been donated throughout the year to do research. “In the nonprofit world, financial efficiency ratios because of their simplicity, ease of calculation and presentation, and apparent comparability between nonprofits have been the default metric. However, many nonprofit experts and watchdog groups have come to realize that simple formula comparisons do not reflect the complexity of the sector and, while useful, do not provide a meaningful analysis of overall effectiveness” (American Cancer Society Stewardship …show more content…
report).
U.S. Department of Veterans Affairs
The Office of Finance is the principal financial advisor to the USH. The office has an overarching responsibility for VHA budget development and allocation, monitors the execution of funds to networks, guides, and oversees financial management and accounting operations, and maintains the Managerial Cost Accounting System for VA (www.va.gov/ofcadmin/docs). The Office of Finance is made up of four major organizational elements, Financial Management and Accounting Systems,
Resource Management, Financial Assistance, and Managerial Cost Accounting through which the Office of Finance’s primary functions and activities are carried out.
“The Financial Management and Accounting Systems Office establishes and implements policies and procedures governing financial management and accounting, internal controls management, and analysis of financial information and activities in support of financial statement reporting” (www.va.gov/ofcadmin/docs). The Resource Management Office provides VHA budget formulation, allocation, execution and analysis, and health care workload and cost analyses. The Financial Assistance Office is responsible to overlook audits and overlook special program fiscal performance, compliance with fiscal policy and Federal accounting rules, and clarifies applied finance guidelines. The Managerial Cost Accounting Office (MCAO) holds and provides information services from the VA’s managerial cost accounting system, the Decision Support System (DSS), in full compliance with public laws (www.va.gov/ofcadmin/docs). DSS is an activity based cost system that gives the full cost of VA products and services throughout the process of financial and workload feeds from several VA
systems.
Conclusion
Many organizations based on the need and the common goal has different financial structures. According to Investopedia (2013), the definition of a financial structure is “a mixture that directly affects the risk and values of a business or organization”. When organizations form a financial structure they are basically trying to decide how much money they may need to borrow and how much debt and equity to obtain (Investopedia, 2013). To keep the financial structure at a minimum, the financial managers have to make sure that they employ the least expensive sources of funds for the organization to use (Investopedia, 2013). Non profit, profit and government organization have many similarity on how the move around the finances through out the organization. Supports balanced records of leading indicators of organizational health in key value domains, including financial sustainability, organizational culture, business and clinical process integrity, clinical safety, effectiveness and reliability, system improvement and optimization, and workforce competencies.
References:
American Cancer Society 2014 Stewardship Report. (n.d.). Retrieved June 15, 2015, from http://www.cancer.org/aboutus/whoweare/financialinformation/stewardship-report
(n.d.). Retrieved June 15, 2015, from http://www.ache.org/pubs/chap1-3gapenski5th.pdf
(n.d.). Retrieved June 15, 2015, from http://www.va.gov/ofcadmin/docs/VA_Functional_Organization_Manual_Version_2.0a.pdf
Health Management Associates Inc. | Home. (n.d.). Retrieved June 15, 2015, from http://www.hmacorp.com/
Investopedia - Educating the world about finance. (n.d.). Retrieved June 15, 2015, from http://www.investopedia.com/
June 15, 2015
Maria Gaza
HCS/577
In the health care industry there are different types program sector organizations, which has its own uniqueness. The different sectors of health care are divided amongst the for-profit, non-profit, and government organizations because they all have a common goal but the financial aspect is the same when it comes to providing care to patients. Within the three types of organization types, the financial need is collected and reported differently due to the organization common goal, financial environment and community outlook. In my research, to give a clearer picture I have chosen an organization that represents each health care sectors environment and they are: Health …show more content…
Management Associates, Inc. which was founded in 1977.a for-profit organization. American Cancer Society (ASA) a not-for-profit organization and U.S. Department of Veterans Affairs as a government organization. In this paper, I will use these organizations to show comparison the structure of each financial environment, the uniqueness of each environment and the prevalent practices of each organization in their financial environment. Collectively by identifying this in each entity will explain why effective financial management is more difficult in health care than in other industries.
Health Management Associates In my research I found that HMA operates about fifty hospitals in many states with approximately eighty hundred licensed beds. “HMA employs approximately thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians” (Health Management Associates, 2011). HMA is known for profit organization and with the three key features of investor-owned corporations. First, the owners which are the stockholders of the business are well defined and they exercise control of the firm by voting for directors. Second, the residual earnings of HMA will belong to the owners, with this said management is responsible only to the stockholders for the profitability of the firm. Finally, investor-owned corporations are subject to taxation at the local, state, and federal levels (Gapenski, 2008). HMA vision states they will lead the hospital industry in quality, clinical metrics, patient outcomes, and customer service. HMA will achieve top tier in the hospital industry and customer satisfaction for their patients, their physicians, and their associates (Health Management Associates, 2011).
American Cancer Society
ACS is a non-profit corporation governed by a single Board of Directors that has came up with s policy, develops and approves an enterprise-wide strategic plan and related resource allocation, and is responsible for the action of the organization as a whole, with the help of regionally based volunteer boards (American Cancer Society Stewardship report).
While doing my research I have come across how ACS has used the fund that has been donated throughout the year to do research. “In the nonprofit world, financial efficiency ratios because of their simplicity, ease of calculation and presentation, and apparent comparability between nonprofits have been the default metric. However, many nonprofit experts and watchdog groups have come to realize that simple formula comparisons do not reflect the complexity of the sector and, while useful, do not provide a meaningful analysis of overall effectiveness” (American Cancer Society Stewardship …show more content…
report).
U.S. Department of Veterans Affairs
The Office of Finance is the principal financial advisor to the USH. The office has an overarching responsibility for VHA budget development and allocation, monitors the execution of funds to networks, guides, and oversees financial management and accounting operations, and maintains the Managerial Cost Accounting System for VA (www.va.gov/ofcadmin/docs). The Office of Finance is made up of four major organizational elements, Financial Management and Accounting Systems,
Resource Management, Financial Assistance, and Managerial Cost Accounting through which the Office of Finance’s primary functions and activities are carried out.
“The Financial Management and Accounting Systems Office establishes and implements policies and procedures governing financial management and accounting, internal controls management, and analysis of financial information and activities in support of financial statement reporting” (www.va.gov/ofcadmin/docs). The Resource Management Office provides VHA budget formulation, allocation, execution and analysis, and health care workload and cost analyses. The Financial Assistance Office is responsible to overlook audits and overlook special program fiscal performance, compliance with fiscal policy and Federal accounting rules, and clarifies applied finance guidelines. The Managerial Cost Accounting Office (MCAO) holds and provides information services from the VA’s managerial cost accounting system, the Decision Support System (DSS), in full compliance with public laws (www.va.gov/ofcadmin/docs). DSS is an activity based cost system that gives the full cost of VA products and services throughout the process of financial and workload feeds from several VA
systems.
Conclusion
Many organizations based on the need and the common goal has different financial structures. According to Investopedia (2013), the definition of a financial structure is “a mixture that directly affects the risk and values of a business or organization”. When organizations form a financial structure they are basically trying to decide how much money they may need to borrow and how much debt and equity to obtain (Investopedia, 2013). To keep the financial structure at a minimum, the financial managers have to make sure that they employ the least expensive sources of funds for the organization to use (Investopedia, 2013). Non profit, profit and government organization have many similarity on how the move around the finances through out the organization. Supports balanced records of leading indicators of organizational health in key value domains, including financial sustainability, organizational culture, business and clinical process integrity, clinical safety, effectiveness and reliability, system improvement and optimization, and workforce competencies.
References:
American Cancer Society 2014 Stewardship Report. (n.d.). Retrieved June 15, 2015, from http://www.cancer.org/aboutus/whoweare/financialinformation/stewardship-report
(n.d.). Retrieved June 15, 2015, from http://www.ache.org/pubs/chap1-3gapenski5th.pdf
(n.d.). Retrieved June 15, 2015, from http://www.va.gov/ofcadmin/docs/VA_Functional_Organization_Manual_Version_2.0a.pdf
Health Management Associates Inc. | Home. (n.d.). Retrieved June 15, 2015, from http://www.hmacorp.com/
Investopedia - Educating the world about finance. (n.d.). Retrieved June 15, 2015, from http://www.investopedia.com/