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A financial market or environment allows different stakeholders to trade on various commodities. There are various financial environments that exist in the modern world. Some of them include; the profit oriented environment, not for profit oriented and, the government oriented government. All these environments possess distinct characteristics in the way the conduct their business. The policies which are put in place are paramount in envisaging the future trend of different financial environment. This paper elucidates the different financial markets stated above. It also stipulates challenges facing a health sector financial market.

Firstly, the nonprofit organizations include; charitable organizations, some hospitals and religious institutions. Taking North Western memorial hospital in Chicago as an example, considerable attention is granted in order to enhance proper and quality services because, poor control may result to ineffectiveness in their acceptance of services. These controls range from financial structure, policies and financial management and are particularly emphasized as noted by (Maechler, et al., 2007). These organizations significantly depend on assistance, contributions and donations from the volunteer’s hence; financial management are not too strict to command but, a high degree of trust and respect highly emphasized. Any extra money may be reinvested in hospitals for better efficiency and, the institution does not pay tax. The greatest share in their expenditure goes to compensated care unit. The first priority would be given to Service to the community.

Apart from the trust in management of finances, the stakeholders should demonstrate the spirit of stewardship. As stated by (Shim, & Joel, 2008), the management administers the funds to a person depending on various factors which, are critically analyzed before disbursement. This may extend to include; a person in dire need with no legitimate ways of getting the funds. When one is under the exploitation of an organization or a particular body or, when there is a clear explanation of any fraud carried out. Various problems face the financial management, due to the liberty in the organization. The organization suffers from human psychology where those with little or no knowledge about finances view the financial controls as a managerial dictatorship. Therefore, for any successful financial management, social services as well as, government bodies should enhance both regular adherence to controls set to help secure a stable funding, religious and the entire civic fraternity should be in the forefront in organizing for the fundraising.

On the other hand, (Shim, & Joel, 2008) avows that, for-profit financial organization relies on profit making principles. Taking an example of Methodist Hospital in San Antonio, it manages its finances through revenue and taxes. The investors would usually raise the extra revenues and, its greatest share gets devote to the compensated care unit. Methodist Hospital is highly controlled with strict restrictions set on all the financial activities carried out to avoid instances of any financial crises.  Government is under control and, regulation of finances helps to prevent laundering of money, gives guidelines in financial regulations. Revenue in this organization are raised from donations and insurance companies and, payments are received from Medicaid. Regulation of finances in profit financial environment is highly attributed to the central management where strict rules are set to avoid exploitation of both the service providers and customers.

Unlike for the nonprofit financial environments, where financial management depends on the trust among individuals, in profit financial institutions, the management of the funds depends on the rules and regulations set, that has to be adhered to it. The community is given first priority and, the organization is exempted from tax payment. The revenues would be reinvested for better provision of services in not-for profit while for the profit, making a profit is the main driving force. Moreover, the organization is not exempted from taxes and extra revenues are returned to the investors. The profit financial environment is profit oriented and all the activities (Sarangdevot, 2006).  On the other hand, taking an example of a government financial institution, a good example university of California Davis Medical Centre in Sacramento, CA, usually set up under parliamentary act. The financial structure comprises of various departments that have subdivisions to enhance better efficiency.

The organization mostly gets its finances from government and, the uncompensated care unit gets the largest share. There are free services, which are offered for free to patients who are given the first priority. Revenues would be obtained from donations and, their payments are received from Medicare. The management gives advice on collection of revenue and accountability as per the set laws. The policies are meant to ensure equitable distribution of resources, eradication of corrupt practices and restoration of independent economic activities and practices.

The policies set include the management, controls, audit, objectives, accountability and authority. Unlike both the profit and nonprofit based organizations, government-based organizations tend to close at a much faster rate than the latter. Income gotten is not for personal benefits but, is targeted to the general welfare of the country and is devoted to the uncompensated care unit (Maechler, et al., 2007). All the financial institutions are similar in that they are under the direct control of the parliament and government regulates all the activities, there are entitled to payments Medicare/Medicaid and receive their revenues from grants and donations.

Essentially, health care financial management proves to be more difficult than most of other industries. This is significantly due to the fact that, normal body health should be supplemented by regular checkups for the eyes, teeth, and blood pressure checkup and insulin examination among others (Sarangdevot, 2006). These regular checkups are usually expensive since, for normal health, this requires to be conducted. It is then accompanied by routine visits to the specialists. Most of the disorders that result are clear indications of failure of a different field and the repercussions felt to the health care department. For example, a problem of malnutrition may be due to increase in food prices. Most ailments are usually unplanned such as, accidents. This requires security to be provided in case of any catastrophe, that makes insurance companies make heavy bills.

This mostly is not a guarantee that one will get accident or, will be sick and thus, has to cater for the expenses of any customer registered with the insurance company who happens to get the accident. This is seen to be unfair for the person whose previous history about the normal health is good compared to the person who is previously or, often falls sick. Also, many companies are against administering of health benefits to their employees especially to the old workers. The higher the number of old employees a company has, the higher the health costs due to their vulnerability to diseases, hence most insurance companies prefer new companies that have new and mostly younger workers.

As a result of increased health care costs, the translation exhibits itself through low payments to employees. Therefore, health benefits usually lowers effectiveness and performance of workers and, sometimes the employee does not have the power to change or, have the freedom to choose on the company one would work. According to (Sarangdevot, 2006), most people would prefer to work for any company that promises to pay better benefits health-wise will be a better take. Most of the companies that pay better benefits to their worker have their own insurance. Poor financial management in health care has also been contributed by poor allocation of resources by the government and poor prioritizing whereby money allocated to heath care may find its way in purchasing of other goods not related to the medical field. Sometimes, consumers demand better services corresponding to the money they pay but, this has been argued to differ from place to place, with availability of treatment equipment contributing a great deal.

In conclusion, Free market in health care has played a major role in difficult management of finances whereby the  society believe that it is their right to get proper health services despite the fact that they do not have the finances. This makes tax payers or other users of the health care to bear those costs. There is also a law whereby definitions of the minimum amount of payment for the insurance ne the various types of payment for a particular disorder which is not easy though, this means to avoid exploitation of people by the various lobbying groups.

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