Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Non-profits operate as tax-exempt charities and are ethically bound to serve the public good. All funds are diverted back into the organization, to further its stated goals.
One obvious problem with using a non-for-profit structure is that it impinges upon the organization's ability to sell shares to raise revenue. On the other hand, donors are encouraged to make contributions to not-for-profits because their donations are tax exempt. A corporation, in contrast, is taxed as a fictional 'person' under the law. A not-for-profit enterprise has the freedom to pursue a wider range of goals, such as providing heath insurance to consumers who might be 'high risk' yet lack coverage. This may not be strictly profitable, but may be part of the organization's charitable mission.
However, because cost efficiency rather than increasing the numbers of covered patients is the stated goal of this enterprise, efficiency may be better served by a for-profit structure. According to one analyst, "investor-owned, for-profit insurers…are more efficient. The truth is they may be more selective in the patients they choose to insure, leaving out less healthy people who have greater needs for care. Basically, out of the health-care dollar they first take their...
Then, the balance -- they call it the 'medical loss ratio' -- is what's left to pay for health care. With some publicly traded HMOs, as little as 75 cents on the dollar is left over. By contrast, the nonprofit HMO pays no tax, returns no profit to investors and thus has more of the Medicare dollar to apply to health care, generally between 85 and 90 cents. At least one nonprofit HMO labels that piece its 'medical cost ratio,' an important symbol that their primary interest is in what is available for health care rather than what is 'lost' from their profit" (Rabkin 1999).
References
Hayden, Eric. (2005, March). Non-profit hospitals face structural as well as financial challenges:
Lessons from Massachusetts. Financial Services Forum. College of Management.
University of Massachusetts Boston. March 2005. Working Paper 1003. Retrieved
November 1, 2010 at http://www.management.umb.edu/faculty/workingpaper/hayden_eric/Hayden_Working_
athttp://www.oralchelation.net/data/BypassSurgery/bypass3.htm
While an individual can sue or make a claim that his or her benefits were illegally denied, the "decision of the plan administrator may often be reversed only if it was found to have been arbitrary and capricious, a very difficult standard to meet. Even if that is proven, ERISA limits damages… [ensuring] the HMO will not be punished" in a substantive fashion (ERISA, 2004, HARP). However, some state courts,
For instance, a decline in peripheral vision may impact the ability to pass approaching vehicles safely, and the decreased range of motion in an older person's neck may impair the ability to look behind when backing up. Also, reaction time decreases by almost 40% on average from age 35 to 65 (Jackson, 1999). It also appears that the aging process may affect cognitive skills. Short-term memory loss, for instance, can
Health Care Reforms Healthcare reform has been a national issue for some time and the ability to afford citizens the opportunity to adequate healthcare services is an interesting debate with many ideas and arguments both for and against the practice. To help understand the finer meanings of what health care reform laws can impact on a region it is necessary to examine the impact of such reforms on a selection
President George Bush proposed a two part strategy with initial implemented drug coverage to low-income beneficiaries coupled with a White House task force to develop a plan to reform Medicare (Health Policy, 2001). Under this plan beneficiaries with income 135% below the national poverty guidelines would be eligible for full prescription drug coverage and a sliding scale would be provided for those under 175% (Health Policy 2001). The most controversial
This huge amount of governmental expenses spread within a period of up to 10 years will result in a slower economic growth. The slow down in the economic growth of America's economy will also be due to the fact that the U.S. economy is currently heavily burdened. Burden to Healthy People: One of the major controversial portions of Obama's health care plan is the burden it places on healthy people since
Scenario B -- the organizational staff member 4. Evaluate the factors that influence your selection of a package. As an individual employee, impacted by the decision regarding the medical package, the staff member would be influenced by the following factors: The extent of the medical coverage in order to reveal and assess its ability to serve the healthcare needs of the individual. The costs involved by the coverage -- detailed throughout the following section. The