...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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...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, with hundreds of...
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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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...manufacturers. Your car, MP3 player, computer, and cell phone were produced by someone else. Our business based economy is responsible for of all the incredible technologies that people have access to today. Businesses bring people, equipment, and other resources together and coordinate the production of goods and services. Then the sell their goods and services on the open market for a profit. This exchange of currency, as trade, for the goods and services created fuels our economy. The employees, owners and investors of a business earn income for their services performed and then are able to use their incomes to buy the goods and services created by others. For-profit and nonprofit businesses and the economy Both for-profit and nonprofit businesses play an important role in our economy. For-profit organization is the Internal Revenue Service’s designation of an organization whose income is used for the benefit or private gain of stockholders, directors, or any other persons with an interest in the company; and is subject to all the tax laws for businesses and industries. A nonprofit organization is the Internal Revenue Service’s designation of an organization whose income is not used for the benefit or private gain of...
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...assistance. There would be no care in fostering our culture, or providing a better environment for our lives. Face it, it would be a world of demise and destruction. Though daunting to imagine, it serves as somber reminder how valuable nonprofit organizations are to society. Nonprofit organizations exist to cater to the various needs of society, and to accomplish their charitable mission. The service and product offered are not for achieving profits, but to benefit society in a noticeable manner. However, in order for nonprofit organizations to maintain efficiency and meet their goals; it is essential for them to operate to their full capacity by implementing good financial management systems and procedures. Financial management plays a significant role in the overall management of a nonprofit organization. Implementing appropriate financial management systems and practices contribute to a successful business and provides...
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...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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...Supplies $ 120,000 Utilities $ 140,000 Insurance $ 750,000 Depreciation $ 1.7 million Total $ 4.3 million Net Income $ 7.7 million What were Brandywine’s 2007 net income, total profit margin, and cash flow? Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or heal by the firm as an addition to retained earnings. As the profit and earnings used income, net earnings, and net profit for net income. However, net income called the bottom line because it’s typically found on last line of the company income statement. One of the most important concepts to understand is that net income is not a measure of how much cash a company earned during a given period. Revenues-expenses= net income $12,000,000 - $7.7 million = $4.3 million (net income) Total profit margin tells how profit a company makes for evaluation dollar generates in revenues. It is the percentage of revenue that a company keeps as profit after accounting for fixed and variable costs. It is calculated by dividing net income by revenue. Net income/total revenue=total profit margin $7.7 million/$12,000,000=$4.3 million Cash flow is the movement of cash into a business. It is usually measured during a specific time. Measurement of cash flow can be used for on a company’s value. It refers...
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...volunteering to meet the needs of society and human necessities. Nonprofit organizations function on responsibilities to society, profit organizations function on responsibilities to themselves. Nonprofit organizations foundation is the “pluralistic theory, it means that a mosaic of agencies try to meet the needs”, of others. Citizens view themselves as benevolent and truly care for others, their needs, and are ready at moments’ notices to assist with solving their basic needs. Charity dates back to the new world in New England as religious missions, and the people providing the services were referred to as overseers of the poor. The overseers sought basic necessities of life to allow the needed short term relief during distress of the poor. The public view of nonprofit organizations is a complex sociological concert and is a solid foundation of real return of resources. Nonprofit organizations have interactions with mutual benefits and it structure (“History and Theory” 2010). GOVERNANCE “Governance in South Africa” (2013) defined governance as the act of governing, it is what governing bodies do (govern). Governance deals with decisions which defines expectation, validates performance or awards power. It is a portion of the decision making process or the leadership process. Governance deals with the quality of governance within an organization and is compared to standard of good governance. When speaking of nonprofit organizations governance looks at management, intransigent...
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...Identify a nonprofit health care organization and a for-profit health care organization of your choosing. Answer the following: Summarize the types of services provided, clientele served, and provider groups involved. Compare and contrast the strengths and weaknesses of each organization from patient, provider, administrator, and third-party payer perspectives. Provide at least 2 suggestions for each organization to minimize the identified weaknesses. Summarize which organization you would rather be part of, using rationale. Abstract There are many differences that for-profit and not-for-profit organizations have between one another. Research has been conducted on one not-for-profit organization (VA hospital) in a for-profit organization (Baptist Medical Center) and the strengths and weaknesses from a provider’s and patient’s perspective in which organization would be a better choice to be part of. Not-for-profit hospitals are recognized for their charitable intentions. Not-for-profit hospitals have a habit of being larger and also have a tendency to be training hospitals. The earnings that not-for-profit hospitals receive are reinvested to enhance the quality care that is offered at these hospitals. Their earnings are also invested into community programs, which in turn can provide little to no fee to those individuals who are considered to be low income families and also maybe uninsured for the services of these programs. The purpose of not-for-profit hospitals...
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...Sports Business Entertainment Lifestyle Jobs Cars Real Estate Find&Save in Houston Small Businessby Demand Media501C3s|Advantages of Organizational Structure|Business Models|Business Structures|Charitable Organizations|Flat Organizational Structure|For Profit Businesses|Franchise a Business|More » Small Business > Business Models & Organizational Structure Business Models & Organizational Structure Definition of a Managing Partner of an LLC Definition of a Managing Partner of an LLC If you want to start a business yet limit your liability for business debts, a good choice would be to form a limited liability company. An LLC functions as an entity separate from its owners. ... Featured Picks How to Buy an Existing Franchise How to Buy an Existing Franchise Entrepreneurs choose to buy an existing franchise for the advantages it offers over starting a new business. An existing franchise has name branding, a customer base and a proven strategy for earning ... How to Build a Stakeholder Base for Nonprofits How to Build a Stakeholder Base for Nonprofits A nonprofit organization relies heavily on the relationships it develops with the people and groups in its community. As you try to build a successful nonprofit, you must identify which elements in ... What Is an LLC Annual Report? What Is an LLC Annual Report? In many states, limited-liability companies (LLCs) are required by law to file annual reports with the state authorities. This is not the same type of...
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...Jo-Rene Queensberry Health Service Organization February 7, .2012 Describe the differences between nonprofit and for-profit hospitals. The difference between nonprofit and for-profit hospitals is the bottom line. Nonprofit hospitals main goal is to produce the best quality of care for the patients while turning profits into more advanced equipment used within the hospital. The nonprofit hospitals have a higher standard in performance in treating common conditions where the for-profit hospitals are not as high. Nonprofit hospitals are hospitals that are controlled by the quality of care and is at a less out of pocket for their patients where the for-profit hospitals are more costly for their services and tend to cost more for the patients after insurance has paid their portion of the bill. For profit hospitals while they do care for the patients the hospitals usually generate higher cost of care to the patients and any profit is returned to investors instead of back into the hospital where more advances and services can be performed (Williams & Torrens, 2010). In today’s efforts to improve the quality of care for patients it has become necessary to sell off to for profit hospitals for some locations. Hospitals today that ran on nonprofit efforts are seeing a hardship on keeping up with new technology equipment and is left with the decision to sell off to a for profit investor to keep the hospital running. Although this is good news for the hospital itself in getting...
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...Middlefield Hospital Report of Strategies and Recommendations For workforce shortages and employee morals Executive Summary Middlefield Hospital has been known throughout the community as a hospital that provides a full array of inpatient and outpatient services. We have been recognized in the community as providing quality care for all of our customers. Today our hospital is faced with many issues that will affect our ability to adequately service our community. This report will discuss in detail the main issues the hospital has been faced with such as: * New hospital recently opens in the area increasing competition. * Local colleges eliminating its nursing degree program. * Employee turnover rate exceeding 20%, leading to over a 100 nursing positions vacancies. * Employee morale deteriorating over the last 12 months. Presented in the report will be strategies to overcome the new competition, proposals of working with the local colleges, and recommendations which would help improve employee morale as well as decreasing the turnover rate. Middlefield’s Competition: The new hospital in the area brings competition for Middlefield Hospital. This affects not only the hospital revenue; it also creates competition for retaining staff. Middlefield is currently losing our medical staff to the new hospital. In efforts to compete with our competitor we have to re-strategies the organization structure. One suggestion would be to renovate our current...
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...To Market or Not To Market: Case Study Differences Between Profit vs. Nonprofit Organizations According to Folland, et al., 2013: Generally, nonprofits do not pay corporate, property, or sales taxes although for-profits do. The only tax advantage enjoyed by for-profits is the ability to write off losses during bad years…On one hand, numerous profit-making firms provide important goods and services to the community, and many provide basic goods, such as food and housing, to the poor. On the other hand, nonprofit firms often serve the well-to-do, and they compete with for-profits. (Folland, et al., 2013, p. 269, 265) Mission and Problem “Community Health Care (CHC) is a non-profit health care organization operating out of Anytown, USA. Its mission is to provide routine check-ups and immunizations at no cost to the economically challenged areas of Anytown. CHC secured a small grant from the state and used the vast majority to purchase all necessary equipment, computers, furniture, and a large supply of gloves, syringes, etc. There is a little money left over that has been set aside for purchasing the vaccinations. They originally believed that through their individual professional networks, they would not need to market CHC. They felt offering such a valuable service for free would result in packed waiting rooms. Unfortunately, the current use of their services is only at an estimated 7% of original expectations. Several individuals within CHC have mentioned shutting down. Others...
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...History Generosity is a quality, the desire to give to others without being asked. Before even the enactment of any legislation, philanthropists helped to shape the way we organize to support the less fortunate. The history of charitable organizations in the United States originated almost at the same time as the formation of our new nation. Benjamin Franklin, was one the founders of our nations and the earliest American philanthropists. He founded the University of Pennsylvania to educate youth. The early setters formed charitable and voluntary associations to help with issues of the era like education, orphanages, and illness (Arnsberger, Ludlum, Riley & Stanton, 2008 p. 1). Young Americans were able to form charitable organizations to fill gaps in the social welfare programs. Back then, charities were mainly hospitals and orphanages support by religious groups and wealthy individuals. During the 19th century, these organizations were controlled and founded by private corporations or a person (Arnsberger, Ludlum, Riley & Stanton, 2008 p. 2). The bloom of the American industry gave birth to bigger corporations; at the same time, the increase of more formal charitable organizations. It wasn’t until the late 19th century that government began paying more attention to this new sector. The first legislation the government imposed was in1894, the Tariff Act that established a flat two percent tax to corporate income, but excluded charities. However, the Tariff Act was...
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...receivable and other accrual items of income under the income section or accounts payable or other accrual items of expenses under the expenses section. The total revenue for the year ending June 30, 2010 was for $64,186 and the total expenses were $89,867. These numbers led me to conclude that the company has a deficit of $25,681, meaning that the organization may suggest future financial difficulty. Analyzing revenues and expenses figures for the last 5 years from the forms 990 (please see Graph No. 1 Revenues vs. Expenses), I can support the idea that the organization’s ability to generate income has decreased and their expenses should be higher. This could be due several reasons such as economic crisis, competence, advertising, marketing, strategy, technology. Based on the form 990, most of the revenue is obtained from contributions. Nowadays we all know how the economy has gone down making a big struggle for donors to make significant contributions. Therefore, nonprofit organizations might be affected by this economic down fall. Another important hypothesis on why they are...
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