Health Care Environments Essay

999 Words Jun 2nd, 2013 4 Pages
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
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A for-profit organization is responsible for paying federal, state, and property taxes (Gapenski, 2006). Carter (2013) stated, “For-profit businesses may raise money by offering investors a percentage of ownership in the company. In the case of a for-profit corporation, investors can provide property, services, and cash in exchange for shares of the company’s stock (pg. 1). According to Lassiter and Arico (2013), the financial management practices used at Health South Rehabilitation Center has been effective because the consolidated net operating revenues increased. Additionally, income increased, cash flow increased, and adjusted free cash flow increased.
Cabell Huntington Hospital Cabell Huntington Hospital is a large non-profit organization providing different services through inpatient and outpatient care (“Cabell Huntington Hospital,” n.d.). According to Gapenski (2006), nonprofit organizations are exempt from paying state, federal, and property taxes. Carter (2013) states, “the profits raised by the organization must be recirculated back into the organization so it is able to fulfill its mission.” The assets of a nonprofit organization belong to the organization. If the nonprofit organization closes its doors, the equipment, and supplies will be gave to another nonprofit organization. The person making the financial decisions in a nonprofit organization is the board of trustees. The nonprofit

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