Banner Health

Banner Health in a non-profit based in Phoenix, Arizona with Peter Fine as the president. They serve as a nonprofit, existing to offer health care services to the community, instead of placing emphasis on generating profits. That means that each dollar they earn is reinvested into a variety of things like new hospital beds, expansion of patient care services, physician services, new technologies, and paying employee's salaries (Banner Health - www.BannerHealth.com, 2015). Hospitals like these are meant to aid people in terms of getting adequate medical treatment and care.

However, NFP hospitals like Banner Health also have to realize the current state of the economy and may have to make some changes in order to continue existing within the current healthcare climate. Body Investor-owned hospitals are more business-oriented than NFP hospitals like Banner Health. Different from earlier investigations based on comparatively small samples, the findings from a big, multi-year sample show NFP and IO hospitals arrange their capital inversely and marginal benefits as well as costs of debt remain differentially influenced by risk, profitability, growth, and size.

IO hospitals use substantially and significantly more debt versus their NFP peers. "The capital structure of NFP hospitals is not as sensitive to risk but more sensitive to profitability. Growth and size also have distinctly different relationships to the use of debt. As NFP hospitals grow, and asset bases get larger, the institutions use more debt" (Turner, Broom, Elliott & Lee, 2015, p. 1). This means the IO hospitals use less debt if they experience growth while NFP experiences debt when they grow and increase profits.

Banner Health has increased in size and amount of services offered. This means they could be experiencing higher levels of debt because of the expansion and may become unequipped to handle the growth. If they are to compete with the IO hospitals that thrive on growth and profit, they need to increase their prices, while still remain lower than their competitors and advertise more. 3 In a 2014 article by Pinho, Rodrigues & Dibb (2014), they suggest that organizational culture has an impact on organizational performance.

"Results have shown that organizational culture impacts on organizational performance. Concerning the market orientation consequences, the study results suggest that higher levels of market orientation result in both high levels of organizational commitment and organizational performance" (Pinho, Rodrigues & Dibb, 2014, p. 374). Results also propose that organizational commitment does not influence performance in a very substantial way. The conclusions add weight to the new emphasis on business-oriented methods as a control for improving performance within non-profit organizations.

Non-for-profit hospitals like Banner health must take into consideration the benefits of approaching organizational culture and performance within a business setting in order to continue existing. Therefore, promotion could be one of the most useful tools when it comes to Banner Health. Many non-profits actively advertise. This is because they need continual donations to keep running. If Banner Health promotes their mission statement, their charitable work, their varied services, they will gain enough public awareness to increase their chances of getting higher donations and revenues.

Advertising on television as well as in social media can offer Banner Health options in terms of appealing to their target audience. Banner Health has a comprehensive array of services from pediatrics to palliative care. This would be a great way to get people interested in going to their hospital. 4 In a recent study, researchers found that investor-owned or I-O hospitals, benefitted from higher markups.

"Higher markups and return-on-equity payments to I-O hospitals afford them a significant advantage on the ability to accumulate and attract financial capital and thus replace and increase physical assets" (Allen, Mueller & Simmons, 2015, p. 160). They also explained that non-for-profit hospitals within the sample appeared to be pricing services, especially routine services, nearer to or below rate. They were unsure whether this was a conscious effort to fund some services or simply a shortcoming in pricing and budgeting practices.

They also stated if NFP hospitals were to be subjected to rate regulations based on existing charges or revenue, they would be at a marked disadvantage. The study suggests NFP hospitals may learn from the I-O hospitals ability to accomplish some management economies within the utilization of physical and personnel assets. NFP hospitals/organizations like Banner Health should try to price things slightly higher than what NFP hospitals traditionally do, in order to avoid potential problems in the future.

However, they cannot price their services like those that I-O hospitals do, because then they would be taking advantage of their non-for-profit position. A middle of the road approach in terms of pricing strategy would be beneficial to them especially in certain services like cancer and palliative care. Cancer is an expensive illness to treat. I-O hospitals take full advantage of markup and charge exorbitant amounts for things like chemotherapy and blood tests.

Banner Health can charge half of what I-O hospitals do and not only provide better services for their patients through acquisition of better products for treatment, but they could also give patients a better price for their care. Cancer remains one of the most costly diseases in America. To price in the middle for such services, would really give a clear advantage to hospitals like Banner Health. Conclusion In conclusion, although organizations like.