Sources of Funds Available for Arroyo Fresco Community HCC Through donations from benevolent Non-Governmental Organizations and individuals Gifts that are given in support of an organization’s exempt purposes and programs are generally tax-deductible within the limits prescribed by law. To be tax-deductible, the organization must exercise full administrative control over the funds given to ensure that they fulfill its exempt purposes and programs. While exercising full control over the funds, the organization must also fulfill its responsibility to honor donor stipulations for particular exempt purposes, if the stipulation does not represent earmarking for a specific individual. With few exceptions, gifts that are earmarked for a specific individual are not deductible as charitable contributions (Allison, 2011). Raising of loans from financial institutions A large number of financial institutions serve as financial …show more content…
Health Resources and Services Administration (HRSA) has helped fund, staff and support a national network of health clinics serving millions of people who otherwise would have little or no access to care (Anheier, Toepler, & Sokolowski, 1997). Embarking on profit ventures To counter a continuing decline in patient admissions and stricter limits on payments for hospital care from insurers and such Government programs as Medicare, hospitals are reorganizing to spawn an array of new ventures to generate more income. Among the new hospital satellites are such real estate projects as professional office buildings for doctors and pharmacies; nursing homes; companies that sell or rent medical equipment to home-bound patients - even a health
In addition to this business plan, we must also address the financial issues plaguing this organization. To illustrate some of these issues lets look at some of the trends here at OCB and within our Industry: For example, OCB’s clinic operations profitability in 1990 was 60%, and now in 1996 our profitability is only 37%, which is down 23 percentage points! We can blame some of this on rising costs of overhead, consumables, etc, however this is happening as the industry as a whole is growing 5% annually, and as our customer base, largely senior citizens, population is growing at almost 1% as year. We should be capitalizing on these industry trends, however, as you all know, not all the trends work in our favor. For example, our lifeblood, the Insurance company’s managed care organizations, and government healthcare reimbursement programs shows a downward trend of allowable payments for our services (DRGs) For example in 1995 the DRG price of ...
The nation has approximately 1 million nonprofit entities of various sorts and hospitals have long been a traditional service provider in the nonprofit sector (Williams & Torrens, page 185). Nonprofit entities are generally exempt from most taxes at the federal, state, and local levels, including income and property taxes (Williams & Torrens, page 185). These facilities are governed by a community-based board that has ultimate authority for running these entities. Sponsorship for a nonprofit can come from various organizations, unlike other hospitals with traditional religious sponsorship (Williams & Torrens, page 185). A small percentage of the nation’s hospitals are operated by for-profit businesses (Williams & Torrens, page 186).
Hino, R. (2013, September 25). Hospital Strategic Plans Must Go Beyond the Status Quo. Retrieved from http://www.hospitalimpact.org/index.php/2013/09/25/p4358
Cuellara, A. E. & Gertlerb, P.J. (2006). Strategic integration of hospitals and physicians. Journal of Health Economics, 25(1), 1-28. Retrieved February 21, 2011, from http://members.cox.net/mshachar/Cuellar_2006_via_TUI.htm.
Around 595,800 establishments make up the healthcare industry. The healthcare industry varies significantly in staffing partners, size, and organizational structures. Even though hospitals make up only 1 percent of healthcare organizations they provide work for 35 percent of all workers in the industry. 76 percent of the healthcare organizations are formed by offices of dentists, physicians, and other health practitioners. The healthcare industry is designed to administer care 24 hours, respond to needs of patients, diagnose, and treat. The purpose of this industry is to combine the human touch with medical technology (U.S. Bureau of Labor Statistics, 2010).
Educational Funding: One of the ACA's primary mechanisms for increasing the amount of providers, particularly in areas wherever need is high, is through extra funds to the National Health Service Corps (NHSC). This 40-year-old program, administered by the Health Resources and Services Administration (HRSA), offers providers monetary, skilled, and academic resources in exchange for operating in historically underserved areas of the country.
Hospital Corporation of America (HCA). Staff Analysis Statement of Problem HCA, after following a conservative financial policy since its establishment, has entered the new decade preparing to make some changes in order to realign their financial strategy and capital structure. Since its establishment, HCA has often been used as a measure for the entire proprietary hospital industry. Is it now time for the market to realign their expectations for the industry as a whole? HCA has target goals that need to be met in order to accomplish milestones in the future.
The company has several locations within the community and also has it IT operations based out of the city. As the Baby Boomer population hits retirement age (approximately 10,000/day) and due to the more medical complex patients we are seeing, it will give rise to more volume in the healthcare industry in the near future ("Are Medicare Patients," 2012). In our current market approximately 1000 patients per year come onto Medicare based on out Dixon Hughes data that note a 1.87% (CAGAR) or compounded annual growth rate.
One primary key to a successful health care organization is having a strategy to achieve the mission of the organization. This is particularly true in reference to creating a budget and generating revenue for a profitable bottom line of a hospital. Executives are experiencing a gap that is continuously widening between technology and hospital demands, which is causing additional conversation around pricing. According to Nugent (2004), there are three major themes to consider when it comes to strategic pricing. These themes include pricing at the margin (pricing new business to cover variable costs and margin, if capacity exists), cross-subsidizing (funding one service with profits from another service) and testing what the market will bear
Individual hospitals belong to a number of different buying groups and often switch from one group to the next.
Healthcare facilities need to be less income oriented. This will ensure that the objective of all doctors and nurses is to restore patient health and not to make money for the institution. This would not actually mean that hospitals would lose money. On the contrary, patients will be more comfortable in an environment where the doctor has the well-being as their primary objective. This will attract more patients.
6) mentions some critics argue that treating patients should not be considered a business. These critics argue that these initiatives have the chance of negatively affecting patient treatment and “care as the quest for achieving enhanced operational performance may dictate procedures” (Kudyba, 2010, p. 6). I do see where these critics are coming from however, look how far medicine has come and how much has improved. These new protocols and business models are extremely beneficial to not only the hospitals but to the patients, as well. Most nurses and doctors came into this business to help people. Just because they have to follow a specific business model doesn’t change their heart. These protocols have the ability to improve patient weight time, improve care protocols, which saves time and money for both parties, and save lives. There really is no other way to go about this besides treating it as a
Regional Market: During the 1960’s, the hospital industry boomed with billions of dollars for hospital construction with additional funds for expansion and construction of medical schools. Government sought to reduce health care costs through cutbacks in subsidy programs and cost-control regulations. Innovations in health care delivery severely reduced the number of patients serviced by hospitals.
The region’s labor market is already tightening, as a result of which competition for skilled healthcare professionals is increasing. Kaiser Permanente would have to compete with the existing hospitals in recruiting and retaining qualified management and staff personnel responsible for the day-to-day operations of each of its hospitals and physician practices, including nurses and other non-physician healthcare professionals. The scarcity of nurses and other medical support personnel in the region presents a significant operating issue. This shortage may require Kaiser Permanente to enhance wages and benefits to recruit and retain nurses and other medical support personnel, recruit personnel from foreign countries, and hire more expensive temporary personnel. Competition for skilled healthcare professionals may lead to a further increase in Kaiser Permanente’s wage
Blair’s research found out that during the past thirty years, the health care industry has been in the throes of new and different change because of the environmental threat to health care organizations trying to maintain balance. On the other hand, when such change occurs it creates room for opportunities for the novelty and creation of new ideas and organization. Accordingly, the entrepreneurial process is the method of putting forth a creative process of destroying a long-established market by the introduction of modern and new novelty, into a new market, thereby making use of new materials or equipment since entrepreneurial activity is an efficient strategic response to environmental instability (Blair p.168).