Although the emergence of investor-owned hospital chains has been an important part of this change, there also has been substantial growth in multi-institutional arrangements among not-for-profit hospitals and a surge of investor ownership and multi-institutional arrangements among most kinds of health care organizations—psychiatric hospitals, nursing homes, health maintenance organizations, home health agencies, and various types of ambulatory care centers. Distinctions between organizational types have begun to break down.
Some government facilities are closing while others are being sold to private-sector firms.
These developments may result from normal market competition that tends to drive inefficiencies from the system. But something important could be lost when public facilities disappear from the marketplace: Health facilities of different ownership types — private for-profit, private nonprofit or government — coexist in many markets.
Each is organized on a different legal basis. Specifically, the first within each group represents a for-profit organization; whereas, the other two are public and nonprofit entities, respectively. Other health care organizations, such as substance abuse centers, dialysis facilities and community health clinics, also sometimes take on different legal ownership forms.
Mixtures of ownership add competition along different dimensions. Economic scholars have considered how the various organization types pursue alternative goals and behave differently regarding choices such as setting prices, quality and mix of patients i.
If all medical care was provided by for-profit organizations, consumers might worry that providers would skimp on costs by compromising quality in the pursuit of higher profits.
Nonprofit providers, in contrast, are supposed to use any financial surplus for the express purpose for which the organization was formed. For example, a nonprofit hospital may use the surplus to install additional beds, provide uncompensated care or offer unpaid community benefits, but not to pay bonuses to decision-makers within the hospital, such as managers, employees or board members.
Ownership Forms of Health Care Organizations You are an external consultant with 10 years experience in your field. Fifty doctors are trying to get together to form a health care organization, and they come to you for suggestions on developing the ownership form for the organization. There are many common ownership forms that are available to form a health care organization. So when asked to advise fifty doctors on what common ownerships forms there are you must first think of what organization of health care you plan to open. Working on the capacity as an external consultant in. Week 1 – Assignment —- Ownership Forms of Health Care Organizations Review Chapter 1 of your course text and formulate a response to the following topic: You are an external consultant with 10 years’ experience in your field.
Nonprofit health care organizations face the opposite incentive — to produce with higher costs and quality. This incentive is particularly strong when decision-makers in those organizations receive personal benefits or prestige from running or working in a business with higher levels of structural, process or outcome quality.
Thus the mixture of for-profit and nonprofit companies brings about a better balancing of costs and quality from a consumer perspective. What do public or government health care institutions bring to the table under this competitive spillover theory? One possibility is that when it comes to human capital services like health care or education, consumers value costs and quality, but also access.
Government, often as the provider of last resort, directly provides greater access or pressures for it, either by coexisting in the market or threatening to enter it. Notice the important role that community colleges and community hospitals provide in this regard. The competitive spillovers from the three legal types of organizations may help to bring about a more efficient balancing of costs, quality and access from a societal perspective.
The effects of the current economic climate on government health care facilities bears watching, as do the effects on access that result from their closure or takeover by private firms. If levels of access fall, consumers may suffer harm, particularly vulnerable or underserved populations that disproportionately depend on public institutions.
Government is often viewed as the antithesis of the market.
But when it comes to health care, it may be more appropriately viewed as a critical player in it, though in potential balance with facilities of other ownership types. He blogs at The Incidental Economist.
Rexford Santerre is a professor of finance and health care management at the University of Connecticut. You must credit us as the original publisher, with a hyperlink to our khn. Please preserve the hyperlinks in the story.
Let us know at KHNHelp kff.HCO Ownership Forms of Healthcare Organization Amber Hull MHA Financial and Managerial Accounting Instructor: Stacy Hiles August 27, It has come to my attention that you have requested my advice on choosing a Health care Organization.
Ownership Forms of Health Care Organizations You are an external consultant with 10 years experience in your field. Fifty doctors are trying to get together to form a health care organization, and they come to you for suggestions on developing the ownership form for the organization.
View Essay - Ownership Forms of Health Care rutadeltambor.com MHA from MHA at Ashford University.
Running head: OWNERSHIP FORMS 1 Ownership Forms of Health Care Organizations Josefina95%(21). Title: Ownership Forms of Health Care Organizations Class: MHA Financial & Managerial Accounting There are many common ownership forms that are available to form a health care organization.
Fifty doctors are trying to get together to form a health care organization, and they come to you for suggestions on developing the ownership form for the organization. Ownership Forms of Health Care Organizations. It is your job to advise them on what common ownership forms are available for the organization and provide an example of.
Ownership forms of Health Care Organizations Ownership forms of health care organizations. Nonprofit Business Oriented Organization Nonprofit organization works continuously to meet the healthcare needs of our community, regardless of .