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 government financial environments.
For-Profit
Not-for-Profit
Government
Examples
1. Private Practices
2. Group Practice
3. Outpatient Surgical Centers
1. Hospitals
2. American Red Cross
3. Alzheimer’s Association
1. Veterans Hospitals
2. Local Health Centers
3. Office of Alcoholism & Substance Abuse Services
Similarities
The similarities is that most medical offices compared to hospitals or governmental entities accept most insurances. Funding is primarily from insurance companies, private sources, and self-pay. Some private practices more acceptable to Medicare than Medicaid but maintain a heavy volume of patient care in each setting. Not-for profit entities are facing similarities with governmental entities and for-profit entities because of the current changes considered to provide insurance to the uninsured. The Affordable Care Act will help individuals with receiving care however, the changes with reduce the net income based on the funding for Medicaid and Medicare (Scalesse, 2013). Each entity provides support to the community with providing quality services to the people. Officials work together with other entities with developing laws and regulations on providing care and services. In addition, each entity provides education to the patients. Differences
The difference between the groups is the increasing costs of medical care and economic slopes is causing facilities to convert or face a buy out from bigger medical practices or groups. “ According to Scalesse (2013), she states, “ The downward economic trend and related unemployment rates have significantly increased the cost of providing care to the poor and uninsured” (p. 38). Instead of the poor and uninsured receiving care at private entities, individuals are receiving care and prevention through governmental agencies and hospitals to cut the burden of out-of-pocket medical cost at the time of visit.
The difference is people may decide to not participate in the changes of the Affordable Car Act, which will cause private entities to miss revenue, create medical facilities to fail with quality care and services. However, hospitals and governmental entities will increase in patient care with the lack of private practices participating with Medicaid and Medicare based insurances. In addition, not-for-profit entities do not rely on government programs and can provide certain services through a tax-exemption. No
The difference between the three entities is that for-profit entities require investors; not-for-profit work efficiently through the community and within self-regulations of charitable sources and religion. Governmental entities create programs to provide further support and guidance of prevention, self-help, and must keep a constricted record of its expenditures. Expenditures must provide reasoning and purpose.
Reference
Scalesse, M. (2013). The great healthcare debate: For-profit vs. not-for-profit. Nursing Management (Springhouse), 38-43, 44 (11). DOI: 10. 1097/01. NUMA. 0000432220. 71510. 72
