Health Care Environments
Comparing Health Care Financial Environments
Melinda Calhoun
HCS/577
May 14, 2013
Nicholas Coburn
Comparing Health Care Financial Environments
Health care organizations will have similarities and differences concerning finances, depending on the environment of the facility. The three types of health care environments are for-profit, nonprofit, and governmental organizations. Health South Rehabilitation Center is a for-profit facility specializing in rehabilitation. Cabell Huntington Hospital is a nonprofit organization providing different types of services through inpatient and outpatient care. The Center for Medicaid and Medicare Services is a government program providing health insurance to eligible individuals or families. The health care facilities will have similarities and differences within the financial structure. The person making financial decisions will be different in each environment. Policies are unique to each financial environment and each facility will have financial management practices which are prevalent in the financial environment. Ensuring health care facilities have an effective financial management practice is more difficult than in other industries.
Health South Rehabilitation Center Health South Rehabilitation Center is the nation’s largest skilled for-profit inpatient organizations specializing in rehabilitation services (“Health South Rehabilitation Center,”n.d.). Gapenski (2006) stated, “The size and structure of the finance department within the health services organizations depend on the type of provider and its size” (pg.9). The roles in the financial structure at Health South Rehabilitation Center consist of the owner and stockholders, along with other leaders (“Health South Rehabilitation Center,” n.d.). The owner and stockholders make the financial decisions in a for profit organization. Health South has a board of directors, and executive, and senior management. According to Carter (2013), the
Melinda Calhoun
HCS/577
May 14, 2013
Nicholas Coburn
Comparing Health Care Financial Environments
Health care organizations will have similarities and differences concerning finances, depending on the environment of the facility. The three types of health care environments are for-profit, nonprofit, and governmental organizations. Health South Rehabilitation Center is a for-profit facility specializing in rehabilitation. Cabell Huntington Hospital is a nonprofit organization providing different types of services through inpatient and outpatient care. The Center for Medicaid and Medicare Services is a government program providing health insurance to eligible individuals or families. The health care facilities will have similarities and differences within the financial structure. The person making financial decisions will be different in each environment. Policies are unique to each financial environment and each facility will have financial management practices which are prevalent in the financial environment. Ensuring health care facilities have an effective financial management practice is more difficult than in other industries.
Health South Rehabilitation Center Health South Rehabilitation Center is the nation’s largest skilled for-profit inpatient organizations specializing in rehabilitation services (“Health South Rehabilitation Center,”n.d.). Gapenski (2006) stated, “The size and structure of the finance department within the health services organizations depend on the type of provider and its size” (pg.9). The roles in the financial structure at Health South Rehabilitation Center consist of the owner and stockholders, along with other leaders (“Health South Rehabilitation Center,” n.d.). The owner and stockholders make the financial decisions in a for profit organization. Health South has a board of directors, and executive, and senior management. According to Carter (2013), the
References: Cabell Huntington Hospital. (Novemeber 23, 2012). About. Retrieved from http://cabellhuntington.org/. Carter, C. (2013.). For profit versus not for profit organizations. Retrieved from http://smallbusiness.chron.com/profit-vs-not-for-profit-organization-4158.html. Centers for Medicare and Medicaid Services. (n.d.). Home. Retrieved from http://www.cms.gov/. Gapenski, L.C. (2006). Accounting fundamentals for health care management. Jones and Bartlett Publishers Inc. Retrieved from University of Phoenix. HealthSouth. (n.d.). Welcome to HealthSouth. Retrieved from http://www.healthsouth.com/. Lassiter, C., & Arico, M.A. (April 25, 2013). HealthSouth. Retrieved from http://files.shareholder.com/downloads/HLSS/2477846587x0x657188/2a6e723c-0e66-4390-9680-702af4d2f061/View%20Earnings%20Release. Rosenbaum, S. (July 9, 2012). Update: Financial assistance policies for nonprofit hospitals that seek federal tax-exempt status. Retrieved from http://www.healthreformgps.org.