Comparative Summary

Topics: Non-profit organization, Management, Finance Pages: 6 (987 words) Published: June 22, 2015


Comparative Summary
June 15, 2015
Maria Gaza
HCS/577

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: Health Management Associates, Inc. which was founded in 1977.a for-profit organization. American Cancer Society (ASA) 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. Health Management Associates

In my research I found that HMA operates about fifty hospitals in many states with approximately eighty hundred licensed beds. “HMA employs approximately thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians” (Health Management Associates, 2011). HMA is known for profit organization and with the three key features of investor-owned corporations. First, the owners which are the stockholders of the business are well defined and they exercise control of the firm by voting for directors. Second, the residual earnings of HMA will belong to the owners, with this said 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). American Cancer Society

ACS is a non-profit corporation governed by a single Board of Directors that has came up with s policy, develops and approves an enterprise-wide strategic plan and related resource allocation, and is responsible for the action of the organization as a whole, with the help of regionally based volunteer boards (American Cancer Society Stewardship report). While doing my research I have come across how ACS has used the fund that has been donated throughout the year to do research. “In the nonprofit world, financial efficiency ratios because of their simplicity, ease of calculation and presentation, and apparent comparability between nonprofits have been the default metric. However, many nonprofit experts and watchdog groups have come to realize that simple formula comparisons do not reflect the complexity of the sector and, while useful, do not provide a meaningful analysis of overall effectiveness” (American Cancer Society Stewardship report). U.S. Department of Veterans Affairs

The Office of Finance is the principal financial advisor to the USH. The office has an overarching responsibility for VHA budget development and allocation, monitors the execution of funds to networks, guides, and oversees financial management and accounting operations, and maintains the Managerial Cost Accounting System for VA (www.va.gov/ofcadmin/docs). The Office of Finance is made up of four major organizational elements, Financial Management...


References: American Cancer Society 2014 Stewardship Report. (n.d.). Retrieved June 15, 2015, from http://www.cancer.org/aboutus/whoweare/financialinformation/stewardship-report
(n.d.). Retrieved June 15, 2015, from http://www.ache.org/pubs/chap1-3gapenski5th.pdf
(n.d.). Retrieved June 15, 2015, from http://www.va.gov/ofcadmin/docs/VA_Functional_Organization_Manual_Version_2.0a.pdf
Health Management Associates Inc. | Home. (n.d.). Retrieved June 15, 2015, from http://www.hmacorp.com/
Investopedia - Educating the world about finance. (n.d.). Retrieved June 15, 2015, from http://www.investopedia.com/
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