...Profit vs. Non Profit Healthcare Organizations Prepared By: Milton Flores Table of Contents I. Introduction……………………………………………………………………………………………………………………………………3 II. Definition of Non Profit Health Care Organization………………………………………………………………………….4 III. Definition of Profit Health Care Organization…………………………………………………………………………………4 IV. Issues facing Non Profit and Profit Health Care Organizations……………………………………………………….5 V. Options to improve operations……………………………………………………………………………………………………….6 I. Introduction The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for profit hospitals and whether there is enough evidence data to support policies dictating ownership. Hospitals in the United States are the largest health care organization in this country. Private hospitals may either be classified as non-profit or for-profit institutions. The majority of the hospitals within the United States are non-profit. The main difference between non-profit and for-profit hospitals is the regulatory rules. Non-profit hospitals are not required to pay property, sales, or income tax. The reason that non-profit hospitals and other organizations were established was with the intention of servicing the needs of the poor. This is the reason that not-for-profit health care and hospitals are exempt from taxes, it was due to the...
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...entities exist in. These include for-profit, not-for-profit, and government organizations. These environments have many similarities, as well as differences. Examples of these may include the Methodist Hospital in San Antonio, which is a for-profit organization; the American Heart Association, which is a not-for-profit organization; and the U.S. Department of Health and Human Services, which is a government organization. Each of these organizations has their own practices and policies unique to them. Not-For-Profit According to Investopedia (2016), a not-for-profit organization does not earn profits with the intent to line the pockets of an owner, but rather it is earned or donated and then used to achieve the goals or objectives of the organization. Many, but not all NFPs are charities or some other public service organization. NFPs are able to apply for a tax exempt status, as long as they meet certain criteria set by the state and federal government, thereby freeing them from most forms of taxation. Any donations that are made to the organization may be tax deductible for the person making the donation. According to Carter (2016), “Not-for-profit organizations raise capital by soliciting donations from businesses and individuals. Government and private grants may be used to fund the operation of a nonprofit organization. A not-for-profit organization may have an easier time getting the public to donate capital in comparison to a for-profit organization due to the perception...
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...HOBBY LOBBY VS. THE AFFORDABLE CARE ACT Leonila Gonzalez oUR LADY OF THE LAKE UNIVERSITY HOBBY LOBBY VS. THE AFFORDABLE CARE ACT Leonila Gonzalez oUR LADY OF THE LAKE UNIVERSITY Businesses can be affected by many laws and mandates that are set by the state or federal government. It can be difficult for a small firm to stay in business when such mandates are passed. The Affordable Care Act was signed into law by President Obama on Mach 23, 2010. Key components to the law are improving quality and health care costs, new consumer protections and access to healthcare, and mandating that all firms provided insurance for their employees. Small Business Tax credits were also included as an incentive and a way to reduce cost for the smaller firms. (Human Health Services, 2014) In order for a firm to be exempt from providing insurance to its employees they had to be classified as a non-profit organization or a Church. A businesses classification will give them exemptions for example a non-profit organization. A non-profit organization can be defined as “an incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially” (Investor Words, 2014). Because of the mandates of the Affordable Care Act, it is now in the center of litigation in which a for-profit organization is asking for exemptions from providing women health care, contraceptives, due to the owner’s religious belief. (Reese...
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...Comparative Studies Dominique Comparative Studies There are many forms of health care organizations, they are grouped by their financial structures, and sources of funding. The three types that exist in the United States are for-profit, non-profit, and government funded organizations. The financial resources and how profit is appropriated are different amongst all three types of organizations. Government Funded The most well-known government funded health care system is the Department of Veterans Affairs. This health care system is unique in that it was created specifically to treat American veterans of the US military, whereas for-profit and non-profit organizations must treat every patient regardless of status, or ability to pay. A person who served in the active military, naval, or air service and who was discharged or released under conditions other than dishonorable may qualify for VA health care benefits ("Office of Public and Intergovernmental Affairs", 2014). Many diseases and permanent disabilities or service-connected disabilities, US veterans suffer from were acquired serving in wars both past and present while serving this country. It is the governments’ intention to help treat those who so bravely laid their life on the line to serve and protect this country. On that note, most military are eligible to be treated within this health care system for little to no cost, with very few not meeting eligibility requirements. There are still however financial...
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...Use Google search, the Devry-Keller Online Library, and/or one of the approved websites posted in the Webliography to find a research article(s) (no older than 2001) related to nonprofit versus for-profit healthcare and organizations. Analyze the characteristics of each type of organization and the factors that impact operations. Discuss options to improve the financial and operational performance of nonprofit organizations and the criticisms leveled at for-profit healthcare organizations. Define: characteristics a feature or quality belonging typically to a person, place, or thing and serving to identify it. Define: Analyze examine methodically and in detail the constitution or structure of (something, esp. information), typically for purposes of explanation and interpretation. Characterists: accepting patients community benefits monetary payments "More important, most doctors in a for-profit practice own that business and have complete decision-making autonomy. Doctors in nonprofit settings have no stake in the practice, and major decisions must be okayed by a board of directors." (school) "To be sure, the very nature of hospital payrolls means fewer benefits for physicians. Doctors in private practice can sock away as much as $30,000 annually in a tax-deferred SEP-IRA, or similar plan. But contributions to a nonprofit hospital's plan are capped at $10,000. That's because a private practice can skew its benefits to favor the high earners. In a hospital...
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...them. Organisations are three times more likely to report an increase in well-being spend this year than a decrease, even in the cash-strapped public sector. Our findings imply this is a worthwhile investment. Seventy per cent of organisations offer some sort of health promotion programme. The most common initiatives, offered by three in ten organisations, include advice on healthy eating, stop smoking support, subsidised gym membership, health screening and healthy canteen options. Across all sectors, organisations that used absence as a KPI were more likely than those who don’t to offer a range of health promotion benefits, including advice on healthy eating (42% vs 15%), health screening (35% vs 19%), access to physiotherapy (30% vs 12%), walking pedometer initiatives (21% vs 8%) and stop smoking support (39% vs 17%). Most organisations surveyed provide one or more well-being benefit to all employees, even if they don’t have a specific well-being strategy. Most benefits on offer are available to all employees, particularly in the public...
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...assets in their balance sheets regardless if what is being reported are assets or non-assets. Balance sheets are organized in a particular way so that financial statements fundamentals are arranged in subgroups. Some of the basic examples of assets consist of cash, accounts receivables, and prepaid expenses. Examples of non-current assets consist of fixed assets, intangible assets such as equipment and property, and long term notes receivables. This paper will analyze the meaning of assets and non-assets and compare and contrast the two terms. Current Assets Current assets are short-term assets that a company plans on using or converting within a fiscal year. These assets are defined as company property, which provide benefits to the company. Current assets can be sold, lent, or lease to produce income or help generate value for the business. On a balance sheet companies list the current assets on the top section as it is available to use for the company and they are listed in the order of liquidity. The assets that are listed are cash, short term investments, receivables, inventories, and prepaid expenses. Some company’s accounting and operating fiscal year are longer than one calendar to classify assets and liabilities (Kimmel, Weygandt, & Kieso, 2007). Non-Current Assets Non-current assets are investments made by the company that are held for a long period of time. Items included in non-current assets include property, plant, equipment, and other intangible assets such...
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...Abstract The decisions that businesses make to adjust “pricing, output, expansion, advertising, marginal revenue, and profit conditions of every other firm in the market”. (Thomas, Maurice 2010, p. 561). An oligopoly is described in the book as a “few relatively large firms, each with a substantial share of the market and all recognize their interdependence.” (Thomas, Maurice 2010, p. 512). Meaning, direct competitors understand their internal decisions will affect not only their profits and placement in the market, but also greatly their competitors. Price cutting or expensive advertisement plans will affect the firm’s profit margins, but also with strategically place the competing firm in a position to react. Even in small towns or multiple businesses in the same industries from restaurants to retail, need to be aware of how their decisions affect their own business, but also their market. Decisions should be systematically made and will economically affect a business along with the anticipation of competitor’s reaction to their precise move. Oligopolies are everywhere and can be detected from wheat that is managed by large agriculture groups to cell phone companies. Oligopolies How do firms in the industry compete? Managers within interdependent industries make decisions that will affect not only their firm, but they must consider the reaction to their competitor as well. Without this consideration, the rival’s reaction will certainly affect his or her...
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...market price without references to actual transactions. * Historical cost provides evidences for determining how efficiency management has meet their responsibilities. iii. Through history, FS based on historical cost have been found to be useful. * Mautz – “if whose who make management n investment decision had found financial reports based on historical cost useful over the years, changes in acctg would long since have been mad” iv. The best understood concept of profit is the access of selling price over historical cost. * People understand the basic notion of actual cost compared to the selling price as an access or profit. v. Acctg must guard the integrity of their data against internal modifications. * Historical cost is less subject to manipulation bcoz it is based on actual transaction occurred. vi. How useful is profit information based on current cost or exit price? * Current cost or exit price induce a short term view of profit. * But...
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...the advent of laptop computers business owners, students, and private citizens can take their businesses or academic projects as well as personal or social networking anywhere. However, the rechargeable battery power source is strictly limited with regard to time of available use after each recharge. Modern day rechargeable battery technologies are available with the use of solar power for a many things with the exception of laptop computer batteries. The following proposal will illustrate the need for and the feasibility of Hewlett Packard manufacturing a laptop technology that integrates solar power with the existing electrical power to include a solar power rechargeable battery backup. This proposal will also introduces pricing, and non-pricing strategies, and increases in product differentiation, minimizing costs of the product. Increasing Revenue: There are three ways a business can increase revenue. (1) A company must increase the number of new clients or customers. (2) Increase the value of each sale made to a client or customers with courtesy, and knowledge or technological innovations and advancements. (3) Increase the number of times that client or customer buys from the company (Doyle, 2005). Price is not always the answer, when company offers a lower price to the consumer he or she may look at this as a problem with the equipment the company is trying to sell. The consumer who values a company will pay a price reflecting the company’s skills, experience, and...
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...Conscious Capitalism: A Counter-Point Overall I understand the inherent benefits that Conscious Capitalism brings to business and the stake-holders, but is it fair to think that the model can fit for all businesses? Businesses operate to make money, otherwise they are non-profits. Is it too much to ask profit-driven business to think more like a non-profit? I believe it is a fundamental flaw of conscious capitalism to only focus on the transformation aspect of business and leadership without realizing the transactional implications. Before moving into the readings, I first want to investigate part of the discussion that we had in class. Specifically, the slide identifying “successful” conscious capitalist companies: This slide is incredibly biased because of the companies used. For example, Google during this period increased their FoE by over 5000% while Toyota increased by only 15%. Does that mean if I average them together I can say that Toyota and Google increased by over 2500%? A proper method to present this data would be to dismiss the highest and lowest performing company to bring the data to more realistic terms. By having Google in the equation, this skews the results dramatically and makes a skeptic like me severely question the rest of the data presented. A second issue from the class discussion came from the exercise of identifying traits of someone we admire. Once we identified those traits, the conclusion was drawn that we should be able to expect those...
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...Mission Vs. The Shareholder The mission purpose model is more for the non-profit organizations, whereas the shareholder return is for-profit organizations. The non-profit organizations do not make profit, because if and when they do, it must be reinvested into the company according to the law. On the other hand, the for-profit organizations profits’ go to the shareholders. One of the main benefits of the for-profit organizations is that the shareholders make money from investing in the company itself. I believe that the best model depends on what you are looking to do. Certain situations would call for a different model as the best choice. When it comes to non-profit organizations, they deal with only certain segments of the economy: such as health, education, social services and the arts. With non-profits, most of the goods that are produced are paid for and used by different people. Now that is not the case with for-profit companies. With for-profits companies, products are assumed to be easily judged in terms of quality. This is because the people that buy the product, use the product. With non-profit organizations, because it is based with healthcare and things of that nature, the people that buy it, are not always the ones taking the advantage of it. It is also hard for someone to judge the quality of something that they do not even use. With a lot of the non-profit organizations out there today, they will provide healthcare for third world countries that can’t afford...
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...at an annual rate of 5.796% totalling USD14 million (3Q10: USD14 million) was paid on the 5,000 non-cumulative non-convertible guaranteed SPV-A preference shares issued by the Bank’s wholly-owned subsidiary, UOB Cayman I Limited. On 15 September 2011, a semi-annual one-tier tax-exempt dividend of 5.05% per annum totalling S$34 million (3Q10: S$34 million) was paid on the Bank’s S$1.32 billion Class E non-cumulative non-convertible preference shares. Interested Person Transactions The Bank has not obtained a general mandate from shareholders for Interested Person Transactions. Confirmation by Directors The Board of Directors hereby confirms that, to the best of its knowledge, nothing has come to its attention which may render the unaudited financial results of the Group for the nine months / third quarter of 2011 to be false or misleading. BY ORDER OF THE BOARD UNITED OVERSEAS BANK LIMITED Mrs Vivien Chan Secretary Dated this 2nd day of November 2011 The results are also available at uobgroup.com Group Financial Report For the Nine Months / Third Quarter 2011 United Overseas Bank Limited Incorporated in the Republic of Singapore Company Registration Number: 193500026Z Contents Page 2 4 6 8 9 10 11 12 14 14 15 15 16 18 19 Financial Highlights Performance Review Net Interest Income Non-Interest Income Operating Expenses Impairment Charges Customer Loans Non-Performing Assets Customer Deposits Debts Issued Shareholders' Equity Changes...
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...Discussion on Strategies of Internal Leadership in Chinese Non-Profit Organizations(NPOs) By Larkisha Danish BUS 510 Grants Management and Proposal Strayer University Thousands Oaks Memphis, TN Wei Li,(2011). Discussion on Strategies of Internal Leadership in Chinese Non-Profit Organizations (NOPs). Asian Social Science, Vol 7, No. 12 December 2011 pg.201 The name of the article examined in this review is “Discussion on Strategies of Internal Leadership in Chinese Non-Profit Organizations”. This article discusses, to some extent, the strategies of Chinese non-profit organizations in three aspects: the attribute of Chinese non-profit organizations and definition to the research subject, inadaptation of the traditional organization and leadership style to internal leadership within the non-profit organizations, and discussion on internal leadership strategies in Chinese non-profit organization. The attribute of Chinese non-profit organizations and definition to the research subject. The author believe that the organization should include two areas of content. One, he states that the non-profit organizations should have some type of organizational and public benefit features. Two, he also stated that an organization must have a definite mission. Mission is the premise for non-profit organizations to survive and is also the internal support of their non-profit feature and basic source power for development of non-profit organizations(Wei Li, 2011). Inadaptation of the traditional...
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...Considered | Organizational Goal (per quarter) | Actual Performance (most recent quarter) | GAPS | Financial | Quarterly Profit Results Inventory Turnover (rate of product manufactured in that quarter sold within 1-2 months) | $20,000 90% | $25,000 110% | Quarterly profits were higher than anticipated ($25,000 versus $20,000), as was inventory turnover rate (110% versus 90%). | Customer | Customer Satisfaction Rate Customer Recommendation Rate (rate of new business generated by recommendations from existing customers) | 95% 40% | 80% 45% | Customer satisfaction was lower than expected (80% versus 95%), while customer recommendation rates were higher (45% versus 40%). | Internal Processes | Duplicate Activities Across Functions (percent of the activities completed that are duplicated in another function) Process Automation (percent of the processes employed in production activities that are automated) | 5% 50% | 10% 48% | Duplicate activities across functions were higher than the goal (10% versus 5), while process automation was just a bit lower (48% versus 50%). | People Innovation Growth Assets | Employee Turnover Employee Job Satisfaction | 10% 95% | 15% 90% | Employee turnover was higher than anticipated (15% versus 10%), while job satisfaction was lower (90% versus 95%). | Recommendations based on identified Gaps: Financial Profits were higher than anticipated, as was inventory turnover. This was tied to the findings that inventory from the current quarter...
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