Financial Environment Comparative Summary Essay example

1339 WordsSep 14, 20126 Pages
Financial Environment Comparative Summary The financial structures of health care entities not-for-profit, for-profit, and government are different with funding, ownership, and type of services provided. Financial managers, financial markets, and investors are the components that make up the financial environment. Financial managers rely on investors to supply funds through financial markets when determining whether to use debt or equity financing. To ensure full utilization of financial resources it is important to understand the financial structure. The purpose of this paper is to compare the financial environment of for-profit Saint Francis Hospital, not-for-profit Cleveland Clinic, and Tomah Veterans Hospital. Compared are the…show more content…
The clinic is a “Nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education” (Cleveland Clinic, 2012, para. 1). Compared to for-profit organizations were the profit benefits are shared with investors; at Cleveland Clinic all profits after expenses is used to improve the community. Government entities, such as the Tomah Veterans Hospital are government funded with medical services offered that are charitable and cost-effective to the veterans. “Tomah VAMC will excel in patient-centered Primary, Mental Health, Rehabilitative and Long-term healthcare, partnering with other VHA and community organizations providing a fully integrated continuum of care” (Tomah VA Medical Center, 2012, para. 2). A difference between the health care entities and their financial structures is the balance sheet with Saint Francis hospital summary showing liabilities, assets, and shareholders’ equity. Cleveland Clinic’s summary is similar but shows liabilities, assets, and net assets. The government entity Tomah Veterans hospital is more likely to offer nonprofit services and its balance sheet is different from Cleveland Clinic and Saint Frances Hospital. The government entitiy summary shows intragovernmental and public assets, intragovernmental and public liabilities, and net position. Government and not-for-profit entities are similar with income and property tax

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