Financial Environments Worksheet
For-Profit Not-for-Profit Government
Examples 1.hospital
2.clinic or physician groups
3.nursing home 1.hospital
2.clinic or physician group(ie., Doctors w/o Borders)
3. nursing home 1. hospital (ie., Veteran’s)
2.clinic or physician group
3. nursing home
Similarities 1. Revenues must be accounted for on balance sheet
2. Expenditures must be accurate and verifiable
3. Runs business as usual, same as others 1. Provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or other activities for the betterment of society
2. Must augment their financial statements with nonfinancial data relating to their objectives.
3. Constrained by political forces. 1. Provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or other activities for the betterment of society
2. Must augment their financial statements with nonfinancial data relating to their objectives.
3. Constrained by political forces.
Differences 1.Major funding from Medicaid
2. Offers advanced medical services
3. Pay taxes
4. Do not provide charitable services
5. Employees receive benefits
6. Balance sheet for accounting purposes 1. Not owned by a particular group
2. Exempt from federal and state taxes
3. Receive exemptions from non-profit status
4. Different mission
5. Financial statement for accounting purposes
6. Expenditures may drive revenues
7. Operating revenues from foundations, government grants, membership dues, and fees for services they provide 1.Government hospitals owned by the federal government-classified as federal or public
2. Financial statement for accounting purposes
3. Expenditures may drive revenues
Identify three examples of entities with for-profit, not-for-profit, and government financial environments in the health care industry. Compare the similarities and differences between the for-profit, not-for-profit, and
Examples 1.hospital
2.clinic or physician groups
3.nursing home 1.hospital
2.clinic or physician group(ie., Doctors w/o Borders)
3. nursing home 1. hospital (ie., Veteran’s)
2.clinic or physician group
3. nursing home
Similarities 1. Revenues must be accounted for on balance sheet
2. Expenditures must be accurate and verifiable
3. Runs business as usual, same as others 1. Provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or other activities for the betterment of society
2. Must augment their financial statements with nonfinancial data relating to their objectives.
3. Constrained by political forces. 1. Provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or other activities for the betterment of society
2. Must augment their financial statements with nonfinancial data relating to their objectives.
3. Constrained by political forces.
Differences 1.Major funding from Medicaid
2. Offers advanced medical services
3. Pay taxes
4. Do not provide charitable services
5. Employees receive benefits
6. Balance sheet for accounting purposes 1. Not owned by a particular group
2. Exempt from federal and state taxes
3. Receive exemptions from non-profit status
4. Different mission
5. Financial statement for accounting purposes
6. Expenditures may drive revenues
7. Operating revenues from foundations, government grants, membership dues, and fees for services they provide 1.Government hospitals owned by the federal government-classified as federal or public
2. Financial statement for accounting purposes
3. Expenditures may drive revenues
Identify three examples of entities with for-profit, not-for-profit, and government financial environments in the health care industry. Compare the similarities and differences between the for-profit, not-for-profit, and
References: Finkler, S. A., & Ward, D. M. (2006). Accounting fundamentals for health care management. Sudbury, MA: Jones and Bartlett Gapenski, L. C. (2008). Healthcare finance: An introduction to accounting and financial management. (4th ed.). Chicago, IL: Association of University Programs in Health Administration Horwitz, J. R. (2005). Making profits and providing care: Comparing non-profit, for-profit, and government hospitals. Health Affairs. 24. No.3. Retrieved from http://content.healthaffairs.org/content/24/3/790.full. MediaWiley.com (2010). The government and not for profit environment. Chapter 1. Retrieved from http://media.wiley.com/product_data/excerpt/01/EHEP0015/EHEP001501-1.pdf