Ownership Forms of Health Care Organizations
HCO Ownership Forms of Healthcare Organization
Amber Hull
MHA612: Financial and Managerial Accounting
Instructor: Stacy Hiles
August 27, 2012
It has come to my attention that you have requested my advice on choosing a Health care
Organization . In addition, you also need to decide on which form of health care organization
Will work best for your group. There are four basics forms of health care organization. They
Include: Not-for-profit, Business oriented organizations, For-profit health care Entities,
Governmental Healthcare organizations, and Nonprofit, Non-Business oriented organizations.
The four basic forms of healthcare organizations are available and it is up to us, as a whole to
Examine each form of the health care organization. On an individual basis it can also be difficult
To learn which form of health care organization suits the needs of your group. The first form of
The health care organization are Not-For-Profit, Business-oriented form of organizations. Not –
For-Profit HCOs are owned by the entire community rather than by investor owners. Unlike its
For-profit counterpart, the primary goal of Not-for-profit (also referred to as a nonprofit)
Organization is not to maximize profits, but to also serve the community in which it operates
Through the healthcare services it provides. Not-For-Profit organizations usually are exempt
From federal income taxes and property taxes. In return this favorable tax treatment, Not-For-
Profit organizations are expected to provide the community benefit.
The Second form of health care organizations are the For-Profit Healthcare Entities. The main
Objective of most For-profit firms are reinvested in the form for the long term benefit of these
Owners. For-Profit firms have a wide variety of organizations and ownership structures
Another form in the For-Profit Healthcare Entities is the Sole Proprietorship which are
Unincorporated businesses owned by a single individual. They
Amber Hull
MHA612: Financial and Managerial Accounting
Instructor: Stacy Hiles
August 27, 2012
It has come to my attention that you have requested my advice on choosing a Health care
Organization . In addition, you also need to decide on which form of health care organization
Will work best for your group. There are four basics forms of health care organization. They
Include: Not-for-profit, Business oriented organizations, For-profit health care Entities,
Governmental Healthcare organizations, and Nonprofit, Non-Business oriented organizations.
The four basic forms of healthcare organizations are available and it is up to us, as a whole to
Examine each form of the health care organization. On an individual basis it can also be difficult
To learn which form of health care organization suits the needs of your group. The first form of
The health care organization are Not-For-Profit, Business-oriented form of organizations. Not –
For-Profit HCOs are owned by the entire community rather than by investor owners. Unlike its
For-profit counterpart, the primary goal of Not-for-profit (also referred to as a nonprofit)
Organization is not to maximize profits, but to also serve the community in which it operates
Through the healthcare services it provides. Not-For-Profit organizations usually are exempt
From federal income taxes and property taxes. In return this favorable tax treatment, Not-For-
Profit organizations are expected to provide the community benefit.
The Second form of health care organizations are the For-Profit Healthcare Entities. The main
Objective of most For-profit firms are reinvested in the form for the long term benefit of these
Owners. For-Profit firms have a wide variety of organizations and ownership structures
Another form in the For-Profit Healthcare Entities is the Sole Proprietorship which are
Unincorporated businesses owned by a single individual. They
References: Cleverley, W., Song, P. & Cleverley, J. (2011). Essentials of health care finance (7th ed). Sudbury, MA: Jones & Bartlett. www.proquest.com./ashfordlibrary www.credoreference.com/ashfordlibrary