HSM544 Discussions Week 4


HSM544 Discussions Week 4
As a general rule, for-profit corporations pay taxes: federal and state income taxes on income…

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HSM544 Discussions Week 4

HSM544 Discussions Week 4

All Students Posts – 55 Pages

The Role of Nonprofits in Healthcare 

As a general rule, for-profit corporations pay taxes: federal and state income taxes on income; state and local sales taxes on purchased goods and, in some states, services; and local real estate and personal property taxes on land, buildings, and major equipment. Not-for-profit corporations pay no taxes; they are therefore tax-exempt.

Governments grant tax-exempt status because it relieves them of the burden of providing the services itself. For example, tax-exempt hospitals must provide healthcare services to state residents who cannot afford healthcare services (charity care). In the absence of this arrangement, the government presumably would provide these healthcare services itself. Another reason for granting tax-exempt status is the benefit provided to the well being of the community by organizations providing uncompensated health-promotion programs to the community.

At the most basic level, healthcare organizations of all sizes and types are either nonprofit (NP) or for profit (FP). Similarities between both types of organizations include but are not limited to:

Both have universal goals to provide the highest quality healthcare services needed by patients served.

Both have universal goals to balance costs, quality, and access among all stakeholder groups (e.g., patients, providers, administrators, third-party payers, etc.).

Both MUST make a profit to stay in business and continue providing healthcare services to patients who need them.

Both have to comply with legal policies and regulations at local, county, state, and federal levels.

Both experience similar challenges such as healthcare professional shortages/turnover/burnout, high rates of malpractice lawsuits/litigation, highly complex reimbursement for services and products provided.

Differences between NPs and FPs included but are not limited to:

NPs do not pay income taxes, whereas FPs do pay income taxes (mostly at corporate rates). In return for the benefit of NPs not paying income taxes, legally these organizations are required to treat a reasonable volume of patients for free (i.e., without the ability to pay for services through insurance or personal funds). Conversely, FPs are not legally required to treat patients without an ability to pay for services received.

NPs must put profits into an “excess account” earmarked for a capital improvement projects such as a new piece of technology or structure remodel/addition, etc. FPs pay taxes on profits and distribute the remaining amount to owners/shareholders.

NPs are eligible to apply for and receive numerous federal grants to supplement income and pay for services that may lose money (aka lost leader programs) whereas FPs are typically not eligible to receive grant monies.

NPs typically have a much larger source of gifts and donations by patrons through foundations than FPs.

NPs typically have a much larger volunteer staff than FPs...

All Students Posts – 27 Pages 

This article makes a great point in that adding public insurance as an option in the complex American health care system has been treated as a consolation prize for those who really favor single-payer health care, but the lighter approach might pack much more punch than you might think. What’s more, the best way to see that is by looking at the Indian labor market and the Mexican grocery market.

Here’s how a public option could play out in American health care.

The government would begin to compete with private insurers by giving people the opportunity to buy health care coverage through an existing program like Medicaid or through an entirely new plan. Some people will buy the publicly run insurance, but many others will stick with the private insurance to which they have grown accustomed.

Based on the article titled Why Public Health Insurance Could Help, Even if You Don’t Want It, Jayachandran illustrates how the federal government of Mexico provided essential foods such as beans and rice to the poor.  India provided its poorer citizens with welfare for work.  In both instances, these governments took responsibility because they were able.  I believe the same is true for health insurance, specifically public health insurance in the United States…