Providing diagnosis and treatment as a community healthcare

 
Avenue Healthcare is aimed to be a for-profit healthcare  providing diagnosis and treatment servicesorganization to patients. As a community healthcare provider, AH will also promote communities by offering employment opportunities for all healthcare professionals. It is clear that as a for-profit organization, AH will be required to submit deductions on property and income tax which will eat into its earned profits. However, the benefit of operating AR as a for-profit organization is that there is no limit to the amount of funds that can be invested to raise capital. We will invest in state-of-the-art facilities, buy the required medical facilities, and leverage technology systems to provide quality healthcare services effectively. At this point, it is important to clarify that AH will not compromise on the safety and quality of care for profits. Our board will indeed adopt and maintain a business-driven culture since they are accountable to shareholders. The organization’s long-term goal is to increase growth in a period of five years so it can leverage the benefits that come with size. For instance, a good growth size will benefit from resources such as specialized consultants and in-house legal counsel. Furthermore, as a large organization, AR subsidiaries can share best practices to improve the quality of care. AR will also have a good team of professionals who can sit in spaces where policy is formulated to promote the organization’s agenda.
Even though not all non-profit organizations enjoy income and property tax exemption, they depend on donor funding, slight investments, and support from society for operational resources. Not-for-profit organizations do not earn profits and are limited on the amount they can invest without relinquishing their status as non-profits (“For-profit healthcare vs. not-for-Profit healthcare organizations,” 2018). The only acceptable investments are on maintenance of facilities, buying medical equipment, updating their technology, and other essential costs related to medical developments. A significant characteristic of non-profits is that they promote a service-driven culture and not a business-driven one. Non-profits are always focused on creating value for others outside the organization. Notably, their funding is from the public, causing pressure for accountability (Goncharenko, 2019). This exposes non-profits to public scrutiny and lots of bureaucracy in decision-making. However, as business-driven entities, for-profit organizations have the freedom to be overly aggressive, especially in negotiating managed care contracts. Non-profit healthcare organizations are limited in the capacity to lobby for healthcare reforms. This is because their budget provision for lobby and advocacy activities should not be a significant portion of their overall budget. Otherwise, they risk losing their status as non-profits. Even though for-profit organizations receive low government compensation for care, they are worth giving a shot due to the great room for growth and expansion. Furthermore, a not-for-profit setting allows quick response to changes in legislation. For instance, in case of a reduction in government funding for a certain service, decision-making on the appropriate actions for a win-win situation is faster and effective.
The following are reasons why the other organizational forms were not considered. There is a limited capacity to raise capital for sole-proprietorship, and the responsibility for decision-making on day-to-day operations rests with one person. This idea is a long-term venture which needs proper planning and sufficient resources for smooth operations. Also, the delivery of quality healthcare services needs input from peers and brainstorming with like-minded individuals. On the other hand, partnerships are prone to conflicts, especially when dealing with a difficult partner. Also, getting a person who shares your vision and has similar values is a huge problem. This lack of stability causes unpredictability which is a stabling block for growth. Lastly, corporations face a lot of government oversight. Also, the board of directors is in charge of decision-making and can remove the owners following a disagreement.
References
For-profit healthcare vs. not-for-Profit healthcare organizations. (2018, May 16). BoardEffect. Retrieved From https://www.boardeffect.com/blog/for-profit-vs-not-for-profit-healthcare/
Goncharenko, G. (2019). The accountability of advocacy NGOs: Insights from the online community of practice. In Accounting Forum (Vol. 43, No. 1, pp. 135-160). Routledge.
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