Financial Environment Comparative Summary
The financial structures of health care entities not-for-profit, for-profit, and government are different with funding, ownership, and type of services provided. Financial managers, financial markets, and investors are the components that make up the financial environment. Financial managers rely on investors to supply funds through financial markets when determining whether to use debt or equity financing. To ensure full utilization of financial resources it is important to understand the financial structure. The purpose of this paper is to compare the financial environment of for-profit Saint Francis Hospital, not-for-profit Cleveland Clinic, and Tomah Veterans Hospital. Compared are the financial structures, polices unique to the financial environments, and management practices. The difficulty with effective financial management in health care is also discussed over other industries. Financial Structures
In the health care sector entities whether for-profit, not-for-profit, or government owned have the same common goal of providing quality care to the community. Health care organizations in the financial environment are different in several ways. The financial structure is described as the way assets are financed and the balance sheet shows what the organization looks like at a particular point in time. “The financial structure makeup the right-hand side of a company's balance sheet , which includes all the ways its assets are financed, such as trade accounts payable and short-term borrowings as well as long-term debt and ownership equity” (Allbussiness, 2012, para. 1). In comparing the financial structures of health care organizations the Saint Francis for-profit hospital is investor owned and assets belong to the owners. “Saint Francis Hospital is a leading medical center in the rapid growing Memphis west area” (Saint Frances Hospital, 2012, para. 1). The for-profit hospital operates mainly to maximize...
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