For-ProfitNot-for-ProfitGovernment Examples1. hospital 2. clinic or physician groups 3. nursing home1.
hospital 2. clinic or physician group(ie. , Doctors w/o Borders) 3. nursing home1.
hospital (ie. , Veteran’s) 2. clinic or physician group 3. nursing home Similarities1. Revenues must be accounted for on balance sheet 2.
Expenditures must be accurate and verifiable 3. Runs business as usual, same as others1. Provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or other activities for the betterment of society 2.Must augment their financial statements with nonfinancial data relating to their objectives. 3. Constrained by political forces.
1. Provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or other activities for the betterment of society 2. Must augment their financial statements with nonfinancial data relating to their objectives. 3. Constrained by political forces.
Differences1. Major funding from Medicaid 2. Offers advanced medical services 3. Pay taxes . Do not provide charitable services 5.
Employees receive benefits 6. Balance sheet for accounting purposes1. Not owned by a particular group 2. Exempt from federal and state taxes 3. Receive exemptions from non-profit status 4. Different mission 5.
Financial statement for accounting purposes 6. Expenditures may drive revenues 7. Operating revenues from foundations, government grants, membership dues, and fees for services they provide1. Government hospitals owned by the federal government-classified as federal or public 2.Financial statement for accounting purposes 3. Expenditures may drive revenues 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. References Finkler, S. A. , & Ward, D.
M. (2006). Accounting fundamentals for health care management. Sudbury, MA: Jones and Bartlett Gapenski, L.
C. (2008).Healthcare finance: An introduction to accounting and financial management. (4th ed. ).
Chicago, IL: Association of University Programs in Health Administration Horwitz, J. R. (2005). Making profits and providing care: Comparing non-profit, for-profit, and government hospitals.
Health Affairs. 24. No. 3. Retrieved from http://content. healthaffairs.
org/content/24/3/790. full. MediaWiley. com (2010). The government and not for profit environment. Chapter 1.
Retrieved from http://media. wiley. com/product_data/excerpt/01/EHEP0015/EHEP001501-1. pdf
