Summary Paper: Financial Environment Structure

Comparative Summary

Lashunda Leggett

HCS/577

September 21, 2015

Professor Gomes-Sanders

Comparative Summary

There are many health care services, and programs offered to organizations all over the world. This paper will demonstrate and compare three types of financial environments that include for-profit, not-for-profit, and government. It will show the different financial structures in each environment as well as identify policies that are unique to each environment described. Furthermore, it will discuss how financial management is more difficult in health care than the other industries around us while exhibiting the financial practices and policies of each organization environment.

Financial Structure

The first financial environment will be for-profit in health care. Anthem Blue Cross is a for-profit organization that connects with the members to impact individuals around the US with health insurance. Even though they want to make a better solution by giving quality health care plans to companies, their main focus is still making a profit. For them to stay a top insurance company, they must make revenue over the years by offering to afford insurance to as many individuals as possible. Anthem offers PPO’s, HMO’s and other various special products to help individuals with financial insurance needs. Anthem sets the record to have great relationships with customers, hospitals, and physicians. They want to be a valued health care provider to consumers all over.

The second financial environment is not-for-profit but still known as for-profit because they still have to make a small profit to give back. Even though not-for-profit is a more charitable organization, they still have to have a small profit to pay their employees, get supplies on demand and other things to advertise their organization. Catholic Charities of California is a not-for-profit organization that looks over different charities in California. CCOC provide services and solutions to help individuals who are in need and dealing with poverty. Their main goal is to help the community by any means necessary. There funded through volunteers, donations, government funds and so on. CCOC want to fight for poverty through state capitals, policies, and budgets and have California start looking at the real issues “Why is there even poverty to begin with”. The last financial environment is a government. U.S Department of Veteran Affaire is a great example of government organizations. Their purpose is to improve the quality of veterans health care who are homeless and give more access to benefits services but its ran by government officials. The structures of government affairs are to take care of the individuals in need and future veterans, current veterans, and past veterans.

Unique Policies

Most policies related to for-profit, not-for-profit, and government are very different. For-profit most of the time they may have to follow certain regulations but still have the chance to add their regulations to the police. For instance, Anthem Blue Cross has their insurance and different departments to hand certain issues. They also have set medical policies on coverage than decides if an individual meets the terms and conditions. Their policies can be technical and complex when providing services to individuals in need. As for not-for-profit organizations, they still have to follow regulation but there’s might be more demands because they may get help from the government or get another assistant elsewhere. They must still follow all the policy regulation and when service their community, their policy needs to be known. Most of the policies for-not-profit has to clear that individuals still must receive services even if the patient can't pay or give anything back. The government makes their policies because the government controls them. Their focus is making sure that the people on active duty and not active duty is taken care of through U.S Department of Veteran Affaire. They want their core value always to match the mission they are trying to perceive.

Management Practices

Ratios used in the financial manager for-profit and not-for-profit environments. Using the ratios can help each organization get a better understanding of how they are doing financially compared to their competitors. They will need to look inside the organization to see what needs to be changed if things need to be lowered or be higher. For-profit and not-for-profit should always know what is on hand when it comes to their financial management. They need to make sure that enough money is being revenue to pay the thing they need to pay as well as having a small profit to advertise their programs. Like Anthem and Catholic charities, they are making a name known to themselves by trying to give back to the communities that will later help them thrive and become more profitable.