Comparative Summary of Financial Environments
Financial management is the backbone of any organization. Not-for-profit, Investors-owned for-profit and governmental health care organizations are facing significant challenges because of the shrinking operational budgets. Health care organizations must utilize the available resources to the fullest to remain viable in the health care industry. Nonprofit hospitals are facing stiff competition from their neighboring hospitals and out patient health care centers. Because of tough competition, hospitals are investing heavily in new technologies to attract new patients. Reduced Medicare reimbursements and expenditures on the new techmologies significantly affect hospitals bottom line. It is imperative to understand the financial structure and financial management strategies to ensure fullest utilization of the available financial resources. Both Investors-owned and not-for-profit hospitals have several common elements of organizational structure, but vary significantly on financial structures. Government health care organizations such as Centers for Disease Control and Prevention (CDC) have unique financial structure and financial management strategies to comply with the organizational objectives. For this essay, comparative finacial environment summary of nonprofit hospital, Investorss owned hospital, and the CDC is being discussed.
To be useful, the financial structure of any organization must reflect the nature, needs, and mission of the organization. Components of the financial structure therefore vary based on the nature of the organization. Before discussing the comparative summary of financial structures, it is imperative to understand the key components of financial structure common among the nonprofit, for-profit, and governmental organizations. Components of financial structure greatly depend on the organization structure, its values, and mission. Key components of organizational financial...