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Comparative Summaries Name Institution Comparative summaries Healthcare corporations offer a variety of services at an affordable charge since the government subsidizes healthcare services that increase costs. Consequently, Amerigroup offers medical services to large groups of people at an affordable cost…
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Download file to see previous pages For developed economies, governments offer subsidies in the form of drugs and other equipments that aid in provision of medical services. Health care financial management Health care financial management entails the use of different financial strategies in managing the financial resources of a healthcare facility. According to Goldsmith, (2011), organizations choose financial management stratagems based on the mission and the objective of the organizations. For non-profit organization, careful management of financial resources is essential for accounting purposes. Hence, the reason healthcare institutions use flexible budget. In budgeting, financial management aids organization in forecasting on its mission. Profit organizations increase profitability when forecasting for healthcare service. Amerigroup is an American corporation that offers medical services to individuals who receive healthcare benefits as funded by the public. The entity is a profit organization that sources for its funding from benefits from Medicaid and children programs. According to Dunham-Taylor & Pinczuk (2004), the corporation engages in duties such as providing in-patient care services, disease management services, homes visits and consultation services. Additionally, the organization offers clients insurance covers. According to records from the US department of health, the corporation serves clients in different parts of the United States. In 2011, 2 million people in Louisiana benefited from the services of the company. During the campaigns, the company sensitized the public on the benefits of taking medical covers. Amerigroup operates by sourcing funds from sales of its services. Consequently, professionals based in United States manage the finances of the company. They plan, coordinate and mobilize resources with the objective of providing services to the public through healthcare schemes. Today, Amerigroup operates hospitals in the United States, with a majority of the institutions being private institutions. According to Goldsmith, (2011), Amerigroup is a profit organization owned by stockholders from different parts of the United States. The stockholders make decision on behalf of the company when it comes to planning and restructuring financial obligations at the company. When it comes to profits profit sharing, Amerigroup shares its earnings with stockholders who pay taxes at the facility. Policies unique to each financial environment Policies for organizations that aim at making profits usually differ from policies of non-profit organizations. Analysis of non-profit organizations indicates that the administration is exempted from taxations and other charges that increase cost of operations. On the contrary, profit-making organizations are taxed highly hence, the high cost of healthcare in profit making facilities. Furthermore, the financial structure of private organizations differs with structure of the government (Dunham-Taylor & Pinczuk, 2004). Healthcare financial environment is characterized by the activities of profit, non-profit and governmental organizations. However, private organizations are the leaders when it comes to issuing insurance packages, planning and meeting the needs of clients. In a profit environment, the management uses policies that promote the interest of the company. ...Download file to see next pagesRead More
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