* Health care financial environments most common are for- profit, not-for-profit, and government funding. This paper identified one entity from each of these health care financial environments, described the financial structure of each financial environment, identified policies unique to each financial environment, identified financial management practices prevalent in the financial environment, and explained why effective financial management is more difficult in health care than in other industries. The first one is Health Management Associates, Inc. founded in 1977 to own, lease and manage hospitals throughout the United States (Health Management Associates, 2011). Today HMA operates fifty nine hospitals in fifteen states with approximately eighty eight hundred licensed beds. The Company employs approximately thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians (Health Management Associates, 2011). HMA is a for profit organization with the three key features of investor-owned corporations. First, the owners (the stockholders) of the business are well defined and they exercise control of the firm by voting for directors. Second, the residual earnings of the business belong to the owners, so management is responsible only to the stockholders for the profitability of the firm. Finally, investor-owned corporations are subject to taxation at the local, state, and federal levels (Gapenski, 2008). HMA vision states they will lead the hospital industry in quality, clinical metrics, patient outcomes, and customer service. HMA will achieve top tier in the hospital industry and customer satisfaction for their patients, their physicians, and their associates (Health Management Associates, 2011). *
* The second health care financial environment to discuss is the not-for-profit, the Internal Revenue Code, Section 501(c)(3), grants tax-exempt status to nonprofit organizations. Morton Plant Mease is a not-for-profit health care system comprised of hospitals, outpatient and surgical centers, immediate care centers, rehabilitation centers, wellness centers, a family health center, and a home health care agency (Morton Plan Mease, 2011). As such, these institutions are exempt from federal, state, and local taxes, such as income taxes, sales taxes, and property taxes (Shi & Singh, 2004). In general, all these organizations must provide defined public good and not distribute any profits to any individuals. A major goal for a for-profit corporation, on the other hand, is to provide its shareholders with a return on their investment, but it achieves this goal primarily by excelling at its basic mission (Shi & Singh, 2004). Morton Plant Mease Health Care will improve the health of all we serve through community-owned health care services that set the standard for high-quality, compassionate care (Morton Plan Mease, 2011). And the third one is James A. Haley Veterans’ Hospital that has been improving the health of the men and women who have served the nation. This hospital is the busiest of four poly trauma facilities in the nation (James A. Haley Veterans’ Hospital , 2011). In addition to the main facility in Tampa, JAHV offer services to veterans at the New Port Richey Outpatient Clinic in Pasco County (James A. Haley Veterans’ Hospital , 2011). JAHV is part of the VA health care system which includes one hundred seventy one medical centers; more than three hundred fifty outpatient, community, and outreach clinics; one hundred twenty six nursing home care units; and thirty five domiciliary. JAHV is government owned and funding is from federal governments. J.A.H.V. Hospital mission is to honor America’s veterans by providing exceptional health care that improve their health and well-being (James A. Haley Veterans’ Hospital , 2011).
Some policies unique to each financial environment for example not-for-profit organizations like MPM have...
References: Finkler, S., Henley, R., & Ward, D. (2003, October). Evidence-based financial management. Retrieved from Healthcare Financial Management: http://findarticles.com
Gapenski, L. (2007). Understanding Healthcare Financial Management. Chicago, Illinois: Health Adminsitration Press.
Gapenski, L. C. (2008). Healthcare Finance. Health Administration Press and Association of University Programs in Health Administration.
Health Management Associates. (2011). Retrieved from http://www.hma.com
James A. Haley Veterans’ Hospital . (2011). Retrieved from United States Department of Veterans Affairs: http://www.tampa.va.gov
Morton Plan Mease. (2011). Retrieved from Morton Plan Mease BayCare Health System: http://www.mortonplant.com
Shi, L., & Singh, D. (2004). Delivering Health Care in America A System Approach. Jones and Barlett Publisher, Inc.
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