Comparative Summary
Comparative Summary
Alexandra Miller
HCS471
James Litpon
July 14, 2013
Retype the title of your paper here, leaving the Title style
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: Park Plaza Hospital a for-profit organization, American Diabetes Association (ADA) 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.
Financial Structure
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 manager have to make sure that they employ the least expensive sources of
Alexandra Miller
HCS471
James Litpon
July 14, 2013
Retype the title of your paper here, leaving the Title style
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: Park Plaza Hospital a for-profit organization, American Diabetes Association (ADA) 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.
Financial Structure
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 manager have to make sure that they employ the least expensive sources of
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