Comparative Summary Essay
The health care industry in the United States is big business in proportion to gross domestic product (GDP). Americans spend approximately two trillion dollars on health related expenditures (Baker, & Baker, 2013). The industry is expected to experience positive growth over the next two decades (Baker, & Baker, 2013). Coupled with this growth is the pressing need to control costs. This is especially so in government funded reimbursement programs, such as Medicaid and Medicare (Gapenski, (2008). As the American population ages, the demand for increasingly efficient health care organizations is essential to a positive outcome for the industry. Health care is one of the world’s most complex undertakings, there are …show more content…
Because for profit facilities produce financially viable services, they may only offer specific or limited care to patients (Baker, & Baker, 2013). An example of this might be a clinic that only provides dialysis for patients with kidney failure.
Not-for-profit Financial Environment
The overall goal of not-for profit organizations is to provide high quality care to as many people within their community as possible regardless of economic status (Intermountain Healthcare, 2013).
Intermountain Health Care (IHC)
This health care network is an internationally recognized nonprofit medical group in the Intermountain West. With 22 hospital and 185 clinics, this group provides Utah and Southern Idaho with high quality care (Intermountain Healthcare, 2013). There are three main governing bodies within this organization. The board of trustees, local volunteer governing boards, and community development boards. These three groups all serve without pay in representing their communities.
Unique Financial Policies
One issue affecting these nonprofit organizations is the future of tax exemptions (Baker, & Baker, 2013). More specifically, income and property taxes. Various bylaws, guidelines, and organization structures may vary depending on the community in which they reside. The tax-exempt status is granted by the IRS if