Organization of a Health Care Facility

Topics: Health care, Health care provider, Healthcare Pages: 7 (2429 words) Published: June 19, 2013
Determine whether you would incorporate and state the advantages and disadvantages of doing so.
In this case the need to incorporate the various units of the new specialty health is deemed important in the light of the following benefits. The element of incorporation enables easy access of health care services as patients can get a variety of services at one place instead of travelling to different hospitals and hence enabling them to save more money and time. Incorporation is important for the healthcare entity to enable it enjoy scaled economies and generate more revenues and profits. Incorporation also makes it easy for the health care to promote its services and hence a good marketing tool that ensures increased generation of sales, for instance a patient who gets quality services from the dermatology section can refer a fellow patient who may come for, gynecology or heart disease treatment heart disease. As a corporation the facility can easily obtain loans from banks such a long term loans which be paid within a lot duration of period thus helping it to effectively provide its services. This may help in purchasing of new technological equipment due to changes in the health sector hence provision of advanced medical services. Also as a corporation the facility will also be able to avoid double taxation among the shareholders, this is due to the fact that the profits are only taxed at individual shareholder rates thus higher returns. This hospital will also be able to subscribe its shares for the purpose of raising capital. Shares subscription strategy calls for the public to buy shares hence making the facility to cater for its drawbacks hence its success in the health care industry (Wennberg, 2001). Incorporating the health care facility ensures that the business enjoys perpetual existence in the industry. As a corporation, the health care entity enjoys stability in the industry since the liability is not attached to any an individual or private groups of individuals that may make it collapse due to liability attached to their personal assets. Incorporation enables the business to enjoy a reduction in tax payments that are attached to property and gives the advantage to claim for tax deductions. Incorporation enables the business to raise adequate capital that is vital for expansion and growth of the health care unit in the heath sector. Incorporation enhances credibility of the health sector and thus building the confidence of the clients; incorporated health care facility conveys a great message to the patients, visitors, volunteers, staffs and all others who may see it. It is very important to build a very impressive building as it may point out the efficiency and class of the medical care being offered. It may even start from the car park area, the street signs, the gate and others which may easily influence the minds of many hence convey a certain message. Where the facility is very well organized and eye-catching it may indicate caring and compassion hence efficient services. The facility may also affect the working conditions of the staffs; it easily affects their attitude toward the job and even their behaviors. If it is well organized with clean toilets and arranged corridors together with trained compound security it may even improve the employees’ performances (McClellan & Staiger, 2000). The approach to incorporate the health care entity should be handled with a lot of precautions due to the following disadvantages. Incorporation comes with many procedures and processes that tend to foster red tape which may be costly for the entity, such may include disadvantages such as long procedures such as provision of articles of incorporation as required by the office of Secretary of State. The article being a legal document that gives out the true information about the corporation, it may include the purpose of the formation, the name of the corporation, names and addresses of the shareholders, the location...

References: Cromwell J., Dayhoff A., &Thoumaian H., “Cost Savings and Physician Responses to Global
Bundled Payments for Medicare Heart Bypass Surgery,” Health Care Financing Review 19, no26 (2003) 28–30
McClellan M., & Staiger D., “Comparing Hospital Quality at For-Profit and Not-for-Profit
Hospitals,” in The Changing Hospital Industry (2001) 93–112
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