Financial Environments, Research Paper Example

The three for-profit healthcare organizations are UnitedHealth Group, Community Health Systems, and Tenet Healthcare Corporation. UnitedHealth Group is one of the leading healthcare companies in the U.S. that serves more than 75 million people worldwide (UnitedHealth Group). Community Health Systems is one of the nation’s leading operators of general acute care hospitals. The company operates more than 135 hospitals in 29 states and is the sole provider of healthcare services in 55 percent of the markets it operates in (Community Health Systems). Tenet Healthcare Corporation operates 49 hospitals in 10 states as well as more than 100 outpatient centers (Tenet Healthcare Corporation).

The three not-for-profit healthcare organizations are Ascension Health, Catholic Health Initiatives, and Dignity Health. Ascension Health is the nation’s largest Catholic and not-for-profit healthcare organization which operates in more than 500 locations in 21 states and the District of Columbia (Ascension Health). Catholic Health Initiatives is the nation’s second largest Catholic healthcare system and operates 76 hospitals, 40 long-term care living facilities, two community health-services organizations, two accredited nursing colleges, and home health agencies in 19 states (Catholic Health Initiatives). Dignity Health is the largest hospital system in California and operates in three states which are California, Arizona, and Nevada. The organization employs more than 60,000 employees (Dignity Health).

The three government healthcare organizations are Indian Health Service (IHS), Children’s Health Insurance Program (CHIP), and Centers for Medicaid and Medicare Services (CMS). IHS provides federal health services to American Indians and Alaska Natives. It serves approximately 1.9 million individuals who belong to 564 federally recognized tribes in 35 states (Indian Health Service). CHIP provides health coverage to nearly 8 million children whose families do not qualify for Medicaid but also can’t afford private coverage (Medicaid). CMS is government body that manages Medicare and Medicaid programs as well as State Children’s Health Insurance Program (SCHIP) (AllGov).

As far as similarities among for-profit, not-for-profit, and government healthcare organizations are concerned, all types of healthcare organizations whether for-profit, not-for-profit, and government raise funds through daily operations to cover some or all of their operating expenses. Another similarity is that all types of healthcare organizations plan and create operating budgets in order to manage their scarce resources. While not-for-profit healthcare organizations are known for providing charity care, some for-profit healthcare organizations also provide charity care to patients who cannot pay (Falchek, 2011). Another similarity is that even though for-profit organizations monitor their operating efficiency more closely, even not-for-profit and government healthcare organizations also have performance evaluation plans to monitor employees’ performance.

All types of healthcare organizations may lay-off employees, even not-for-profit and government healthcare organizations. While not-for-profit and government healthcare organizations do not exist for profit maximization, budget constraints may force them to take steps to reduce expenses. Another similarity is that they all engage in marketing though their purposes may be different. While for-profit organizations engage in marketing to increase their brand recognition and attract consumers, not-for-profit and government healthcare organizations often engage in marketing to increase awareness of their services as well as attract voluntary donations from the general public.

Regarding differences among for-profit, not-for-profit, and government healthcare organizations are concerned, for-profit healthcare organizations exist to make money which is why they may reject patients who are unable to pay for the services. In contrast, not-for-profit healthcare organizations may provide service to everyone who seeks help, regardless of their ability to pay. While for-profit healthcare organizations are taxed on their income, not-for-profit organizations and government healthcare organizations are tax-exempt (Writing).

While for-profit healthcare organizations are concerned with profit maximization, not-for-profit organizations and government healthcare organizations are not. Not-for-profit healthcare organizations just attempt to earn sufficient revenues to cover their operating expenses. In addition, for-profit organizations have owners and for-profit organizations may either be privately owned or publicly-listed companies, not-for-profit and government healthcare organizations have no owners (Green). Government healthcare organizations do not seek profit-maximization but they may serve only specific patient groups due to their organizational mission as well as scarcity of resources. For example, IHS only serves Indian Americans and Alaska Natives. For-profit healthcare organizations can also generate funds through equity issue in addition to their daily operations while not-for-profit organizations can’t (Smith, 2011). Government healthcare organizations cannot raise funds through equity issue but they may get funding from federal and/or state governments.

While all types of healthcare organizations exist to provide healthcare services to the public, they often differ in their organizational missions. More and more not-for-profit and government healthcare organizations are borrowing lessons from for-profit organizations in order to use their limited resources more efficiently. It is possible that the differences among different types of healthcare organizations may continue to decline as for-profit organizations also take steps to increase charity care in order to improve their social image.

References

AllGov. (n.d.). http://www.allgov.com/departments/department-of-health-and-human-services/centers-for-medicare-medicaid-services-cms?agencyid=7395. Retrieved September 6, 2012, from http://www.allgov.com/departments/department-of-health-and-human-services/centers-for-medicare-medicaid-services-cms?agencyid=7395

Ascension Health. (n.d.). About Ascension Health. Retrieved September 6, 2012, from http://www.ascensionhealth.org/index.php?option=com_content&view=article&id=31&Itemid=144

Catholic Health Initiatives. (n.d.). About Us. Retrieved September 6, 2012, from http://www.catholichealthinit.org/about-us

Community Health Systems. (n.d.). About CHS. Retrieved September 6, 2012, from http://www.chs.net/company_overview/index.html

Dignity Health. (n.d.). Who We Are. Retrieved September 6, 2012, from http://www.dignityhealth.org/Who_We_Are/index.htm

Falchek, D. (2011, July 22). Retrieved September 6, 2012, from http://thetimes-tribune.com/news/in-for-profit-nonprofit-hospital-models-differences-might-be-subtle-1.1178588

Green, J. (n.d.). The Major Accounting Differences Between Profit & Non Profit Organizations. Retrieved September 6, 2012, from http://smallbusiness.chron.com/major-accounting-differences-between-profit-non-profit-organizations-26257.html

Indian Health Service. (n.d.). Indian Health Service Introduction. Retrieved September 6, 2012, from http://www.ihs.gov/index.cfm?module=ihsIntro

Medicaid. (n.d.). Children’s Health Insurance Program (CHIP). Retrieved September 6, 2012, from http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Childrens-Health-Insurance-Program-CHIP/Childrens-Health-Insurance-Program-CHIP.html

Smith, H. (2011, May 23). Non-profit versus for-profit health organizations. Retrieved September 6, 2012, from http://www.helenismith.me/non-profit-versus-for-profit-health-organizations/

Tenet Healthcare Corporation. (n.d.). About. Retrieved September 6, 2012, from http://www.tenethealth.com/about/pages/default.aspx

UnitedHealth Group. (n.d.). About. Retrieved September 6, 2012, from http://www.unitedhealthgroup.com/main/AboutUs.aspx

Writing, A. (n.d.). Business & Financial Differences Between Profit & Nonprofit Hospitals. Retrieved September 6, 2012, from http://smallbusiness.chron.com/business-financial-differences-between-profit-nonprofit-hospitals-492.html