HSA 400 - Financial Management in Healthcare Organizations Assignment

Assignment Task

Summarizing For-Profit Healthcare Organizations

As a general rule, the primary goal of most for-profit businesses is usually to generate profits that can either be delivered to that company's investors or either reinvested back into the company at a later date for the future benefit of the company and its owners (Cleverley, 2017). For-profit administration should constantly work at establishing a compromise between their legal duties to the company's owners and their other duty of delivering a particular standard of healthcare services in the community they serve (Cleverley, 2017). There are many different organizational and ownership forms that make up for-profit businesses. Publicly traded companies are for-profit businesses that deal in shares of their stock on a free market. Being publicly traded has many benefits, one of which is the chance to gain money in equity by selling business stock (Cleverley, 2017). However, the Securities and Exchange Commission has reporting obligations and regulates all publicly traded companies. Tax status is another major difference in for-profit healthcare services. Tax status can be put front and center, having a significant impact on finances and, consequently, the services being offered (Writer, 2018).

For-profit businesses may also be owned by individuals, which means that only a small number of investors own the company's stock and that it is not freely available to the general public. Additionally, there are much less SEC reporting obligations for privately held businesses (Cleverley, 2017). This usually only applies for smaller corporations because larger for-profit firms are frequently publicly traded. For-profit businesses, whether publicly listed or privately held, are frequently referred to as "stakeholder" businesses (Cleverley, 2017). It is apparent that for-profit hospital boards continue to foster a corporate environment. They must do so because they are constantly having to answer to their shareholders (Price, 2019). Consequently, even when it is critical or requested amongst community members, some hospitals refuse to give up a portion of their income for nonprofit causes. Shareholders of large for-profit organizations frequently do not share the same values or concerns as locals (Price, 2019). Instead of having to retain outside experts, for-profit firms that operate numerous hospitals can employ most of their own personnel, including in-house legal representation and expert consultants. Another perk pertaining to large firms is that they have the opportunity to educate the hospitals within their organization about best practices. (Price, 2019).

A limited liability company (LLC) is a type of business form that combines liability protection offered by a corporation with the tax benefits of a partnership. LLCs are also called Limited Liability Partnerships, or LLP (Cleverley, 2017). The general partner's responsibility is limited under an (LLC). Provided the company's tax distribution rules are obeyed, LLCs are versatile in that they let owners allocate income and losses however they see fit (Cleverley, 2017). Compass Health is an LLC that was founded by Mark Cullen in Crowley, La in 2005. Adults and seniors in Louisiana can receive complete psychiatric health treatments from Compass Health. To encourage healing and wellness, highly educated professionals oversee individualized treatment plans that incorporate psychotherapy and medication management (Psychiatric, 2021). There are currently 10 inpatient locations, 5 outpatient clinics, 12 day programs, and 11 hospital partnerships located throughout Louisiana within the Compass Health organization.

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