Hcs 577 - Healthcare Comparative Summary

Comparative Summary

HCS/577

Erica Taylor

Ralph Gigliotti

December 19, 2016

Comparative Summary

Healthcare is a fundamental part of the society and a core function of the government. However, given the dynamic needs of the health sector, this role has been delegated to private entrepreneurs and charity missions of various organizations. The single most important objective in health care is access and affordability. It has, therefore, being designated with substantial funding from all levels of government as well as charity foundations (Gapenski, 1999). However, given the opportunities in healthcare, private firms and individuals have opened up private practice for profit. While this helps in increasing cumulative capacity, private practice come at a higher cost hence inhibit high traffic due to financial constraints. The difference in this respect produces two categories of health care facilities namely; for-profit and non-profit facilities. In the for-profit classification is the private sector in healthcare that is business oriented. On the other hand, the non-profit category comprises of such facilities ran for the purpose of serving the larger community rather than making profits (Campobasso & Kucharz, 2012). Notably, the two categories require resources to enable them to run efficiently. It is in the management of these resources that the two categories differ fundamentally.

Federal government hospitals are those that are publicly owned and receive their funding from the federal government, private payers and other sources like grants from research institutions, sales from hospital operated gift shops and return on long-term investments made by respective hospitals. Services in these facilities are on low pay as compared to private facilities. Charitable hospitals are run by respective founders; religious groups, community-based and non-governmental organizations and such foundations keen on health care. The founding groups may appoint a board of trustees who are responsible for making decisions while all the funding comes from the said founders. Charitable hospitals, like Federal government hospitals are non-profit facilities and services are offered free of charge or at subsidized rates. Private nursing homes belong to the class of for-profit facilities and are owned by privately held shares. They are profit oriented and services in these institutions are charged at market rates (Boyer & Hammersla, 2001).

Not for profit health care facilities serve approximately 70% of the entire population making them the most depended on health care institutions. In particular, the federal government funded health care services are the primary caregivers. They are representative of the government’s core responsibility in the dispensation of healthcare. They receive federal funding through a health care vote passed by the Congress (Gapenski, 1999). While private payers in federal hospitals contribute to the income of these facilities, they are a minority in comparison to the more than 50% who are public payers and mostly depend on government subsidy. Revenue in federal government hospitals is plowed back while to supplement the annual budget support from the government. The financial management in these hospitals is oriented at ensuring continuity of service delivery. These hospitals are exempted from paying taxes but are expected to make public accurate financial status annually. The hospitals are owned by the population who pay taxes to the government hence the need for a high degree of transparency.

Charitable hospitals, on the other hand, are community focused facilities whose top management is hired from the community they serve (Morrison, 1999). The founders of charitable hospitals are keen on providing healthcare as part of a social responsibility and do not expect to profit from it. Subsequently, they are exempted from paying taxes like federal government hospitals. The founders of charitable nursing homes relinquish any form of interest sharing holding and the facilities are managed by a board of trustees. Different from non-profit health care facilities, private nursing homes are keen on making profits. They pay taxes and charge a higher fee for their services. Private nursing homes have a shareholding; individuals or companies, who are actively involved in the management of the hospitals through their employed personnel (Campobasso & Kucharz, 2012).