Profits in health care organization

Profits in health care organization

Few changes in the organization of the health care in the United States have stimulated more interests and alarm than the rise of a new form of entrepreneurship that is investor-owned for profit-organizations that provide health services as a business (Salmon, 1985). The revenues of businesses that provide health services for profit have been estimated at twenty to twenty-five percent of the nation’s expenditures on personal health services (Relman, 1980), which could amount to 80 billion dollars now. Investor-owned health service businesses range from large companies (such as Hospital Corporation of America, Beverly Enterprises, and Humana, Inc.) that own or operate hundreds of hospitals, nursing homes, and other facilities to independent institutions owned by local investors (Berliner, 2019). In mid-1985, the stock of thirty-four investor-owned companies that provide health care was publicly traded (Modern Healthcare, 1985:173). These companies focus on the specific type of service or facility, such as rehabilitation, alcoholism, nursing homes, hospitals, and medical offices.

Furthermore, many large health companies whose first mandate of the business is not service delivery in health have developed services subsidiaries in health sectors. However, these subsidiaries are not for hospital chains. The health care organization executes activities and services delivery to obtain sufficient funds to carry out other health services.

Positive benefits of profits in health care organizations assist both patients and physicians. Medical officers should be paid well for excellent and smart service delivery. Besides, it creates a room innovation in health, such as new machines inventions. It also allows more responsiveness to the needs of society, patients, and physicians. More importantly, it establishes sound management approaches and new capital for the expansion of health facilities. The top innovations in health care organization purposely service delivery is paramount. The technology of Artificial Intelligence (AI) which health care organization uses to support image analysis is required.

Furthermore, the technology of an expanded window for the intervention of acute stroke is needed; this decreases the risk of disability and much recovery time. Besides, the use of advance immunotherapy cancer treatment has saved patients. This triggers the immune system of the patient to fight cancerous cells. To conclude on innovation, the use of robotic surgery in health service is to higher precision and decrease pain during recovery time.

The excellent responsiveness between patients and physicians is essential as it creates legitimate patients’ expectations. It also plays a role in ensuring the effectiveness of care people and patients with the health facility. It depicts ethical perceptions of service providers and outpatients in the facility. Sound management in a health facility is significant. It improves the patient experience for inpatients and outpatients; this increases the good first impression. Management allows a better care environment in terms of managing wastes, and efficient water flows for consumption among health facility users. Facilities management coordinates maintenance, neatness, databases, and security. Management prevents the risk of disinfection by avoiding the spread of bacteria within the health facility that affects patients and service providers. Above all, the health care organization prefers profits for borrowing (loans). Loans are disadvantageous to some extent as it has high-interest rates and risk of foreclosure in case of default. High-interest rates increase the cost of borrowing and cause loans to be more expensive. Health facility is a heavy consumer of funds; therefore, there will be higher. The effects of risk foreclosure in the case late repay cause stress and uncertainty among the investors. Even more, it damages credit for many years and experiences a deficient balance after foreclosure.

The Patient Protection and Affordable care Act of 2010 is a law that significantly changed health care in the United States (Quadagno, 2019). It made health insurance available for more than ninety percent American population. The Act is also called Obamacare; it was signed into law in March 2013. The aspects were every citizen to get health insurance before first, April 2014, or get a penalty of tax surcharge. Later that penalty was declined by Jobs Act 2019. However, those who did not get health insurance had the option of purchasing from the health insurance center and get a subsidy. The purpose of the Act was to reduce state government from spending on health care. The best and only way to cut health care (federal) was to reduce the cost of health care for the citizens. They reduce frequent visits to the health facility.

In conclusion, Not-For-Profit health care organization uses voluntary institutions to deliver services. The health facilities are charitable for the sick and inferior people because they have various origins in missions, such as seeking to improve the livelihoods of the people. However, not-for-profit health care organization is declined by factors such as capital declines, reduction of charitable acts, and inflation. These factors cause them to use fund accounting.