Baptist Health Lexington Facility

Baptist Health Lexington Facility

Introduction

The research paper below shall be analyzing Baptist Health Lexington Facility. This organization is identified to be a tertiary healthcare facility where it hosts a maximum of 391 beds. The facility also gets used as a research center where clinical research gets conducted. The facility was established in 1954 and has been under constant growth due to its proficiency in providing quality care. The facility majorly focuses on providing cancer care and heart care. The facility also leads in the provision of maternity care. Baptist Health Lexington facility can be identified as a modern home care facility.

Donations towards development have always raised the finances of the facility. The facility, however, records a total annual revenue of $2 billion (Brockopp et al. 2013). The facility also does provide financial assistance to promote the lives of the people of Kentucky. For this facility, it is one of the largest non-profit healthcare systems. The facility is committed to providing quality care, but it also goes further to provide educational support to the community. The facility is a non-profit organization that has got various impacts on economic policy. One is that it will help achieve the objective of promoting the provision of education. Also, it will help in boosting the health of the community. Employment opportunities also get created since the facility employs workers who work in the facility.

Demand Theory

The demand theory reveals the relationship between the demand for a particular service and its price in the market. In a healthcare setting, demand theory elaborates on the relationship between the need for healthcare and the cost of healthcare. When the price of services gets increased, it reduces demand. On the other hand, when the price decreases, the demand for the service gets high. When one wants to determine the demand for healthcare, certain aspects must get considered. One of them is the price of the healthcare service getting offered, is the price high or low. The other point to look at is the consumer; in this case, it is the patient..

Income can also get outlined as the other aspect that affects demand. Income is the money that the consumer earns. For a patient who is a high-income earner, they are likely to pay high prices for any medical service, which is a different case for a low-income earner (Che-Ani & Ali, 2019). After analyzing the financial statements of the Baptist Health Lexington Facility, the demand theory applies. Since the company offers quality and affordable health care to its consumers, we get to see that the demand for their healthcare services is high. Also,since the facility provides healthcare services to the low-income community, the demand is high as they can provide affordable care. This is the reason we get to see that the facility does not gain a lot in terms of financial revenues. However, the facility gets to benefit a lot from monetary donations.

Market Behavior Impact

The market behavior is one thing that affects the financial statements of a company throughout the year. For a non-profit organization such as Baptist Health Lexington Facility, the facility must come up with other avenues of getting money to overcome failure. As for Baptist Health Lexington Facility, the market behavior significantly affects its financial statements. One way it affects the financial statements is that low revenues may get attained. This may be because of the low turn over of consumers to the facility. The other reason may be due to a financial situation in the market. The other way the market behavior may affect the financial statement is where it can cause an increase in revenue. Since the facility is also a research facility, it may get funded to conduct some clinical research, which is likely to raise the revenue (Breaban & Noussair, 2018). Why the market behaviorsaffectfinancialstatements Is because it is the market that determines the income a company gains. For Baptist Health facility, its demand market is the people in the community.

Legislative and Economic Changes

Various economic and legal changes are likely to affect the health sector. For Baptist Health Lexington Facility, one example of an economic transformation that may affect the organization is the growth of the economy. Growth in the economy means that the number of job opportunities also increases, which helps in improving the lives of individuals. How this will affect the organization is that people get to afford quality healthcare. This will help in raising the financial revenues of the organization. In terms of the legislative changes, it was found that the enactment of the reduction of health costs act would have an impact on the facility. Why this change would affect the organization is because it will allow the facility to offer healthcare at lower costs improving the health wellbeing of people in the community.

Policy Changes

Due to the legislative changes that may affect the organization, the organization may decide to come up with some organizational policies. One example of a corporate policy that the organization may enact is a policy of providing affordable healthcare. The other strategy that the organization may come up with is the policy of offering free medical checkups to its patients. The result that comes along from implementing these policies is that it will be useful in the provision of quality, affordable healthcare to the community. The other impact of such policies getting enacted is that the organization gets to have an excellent public image.

Statement Impact

When these economic and legislative changes get made, they are likely to affect the financial statements of the Baptist Health Lexington Facility. One way it will affect the financial statements is that it will affect how financial decisions get made. However, when the economic changes get implemented, they are likely to have a positive impact on the financial statements. The reason for this is because economic growth will allow people to afford healthcare services. For the legislative changes, they are likely to affect how financial decisions get made. The reason is that it reduces healthcare costs; thus, it will not allow the facility to gain a lot of money from its clients. This will cause the facility to record a decrease in their financial statements. Other factors that are likely to influence financial statements include political, administrative, and personal factors.

Potential Disparities

After analyzing the legislative changes that can be made, it is clear that they can cause some disparities in the provision of healthcare. These disparities are likely to affect the operations of the facility negatively. An example of how variation can get achieved is when the organization does not attain revenue that will facilitate the provision of quality health care. For these to get controlled, I would recommend that the organization plans on coming up with new ways they can get revenue. An excellent example is coming up with channels they can receive additional funding. It is also essential to come up with risk management strategies that will help in mitigating these disparities.

Conclusion

From the research study conducted, it is evident that Baptist Health Lexington Facility is one of the top leading non- profit healthcare organization. The organization focuses on the provision of quality healthcare and still maintains good financial statements. When an economic change, such as economic growth, does happen, it may affect the financial statements of this facility. Also, legislative changes can affect the financial statements. Due to these, the facility should innovate mechanisms by which they can control the negative attributes brought out by these changes. However, it is advisable to put out strategies that are to benefit the organization by increasing the annual revenue reports.

References

Breaban, A., & Noussair, C. N. (2018). Emotional state and market behavior. Review of Finance, 22(1), 279-309.

Brockopp, D. Y., Moe, K., Corley, D., & Schreiber, J. (2013). The Baptist Health Lexington evidence-based practice model: a 5-year journey. JONA: The Journal of Nursing Administration, 43(4), 187-193.

Che-Ani, A. I., & Ali, R. (2019). Facility management demand theory. Journal of Facilities Management.