Ownership Forms of Health Care Organizations

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Title: Ownership Forms of Health Care Organizations Class: MHA612: Financial & Managerial Accounting There are many common ownership forms that are available to form a health care organization. So when asked to advise fifty doctors on what common ownerships forms there are you must first think of what organization of health care you plan to open. Working on the capacity as an external consultant in the field is common to give guidance and provide feedback to any ideas that can help improve the way to do things. To have a better outlook on how things can be done 50 doctors have gathered together to come up with ideas on developing ownership form for their organization. The job is to oversee the ideas and ensure them that the ideas…show more content…
However, that does mean that everyone would have the ability to be in the same stock and left with nothing for the company. Governmental HCOs are public corporations, typically owned by a state or local government. They are operated for the benefit of the communities they serve. A variation on this type of ownership is the public benefit organizations. Then there is nonprofit non business oriented organizations the perform voluntary services in their communities they are often called voluntary health and welfare organizations. They too are also tax exempt and rely primarily on public donations for their funds. Examples of these organizations include the American Red Cross and the American Cancer Society. Even though these types of organizations provide invaluable services the financial statements and financial management of these organizations can be different the those of business oriented firms. (William O. Cleverley, 2011) The advantages and disadvantages of the Governmental Healthcare Organizations is they have access to additional revenues sources through taxes which are just as similar if not the same as the other not for profits. However, they are not able to raise funds through equity investments and are also exempt from income taxes and property taxes. The financial environment for not for profit organizations can be understood by their name and objective. They
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