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Running head: FINANCIAL ENVIRONMENT SUMMARY
Financial Environment Summary
FINANCIAL ENVIRONMENT SUMMARY
The financial structure
The financial management for not-for-profit organizations, government organizations,
and for-profit organizations has a lot of differences and similarities. For-profit-organizations
focus on profitability, not for profit organizations focuses on enhancing shareholder value while
providing value in the healthcare system. On the other hand, government organizations' financial
management focuses on providing value for the public good and promoting initiatives that are
good for the public. A not-for-profit organization, however, does not enjoy flexibility in its
financial management plan because it does not engage in exchange transactions like it's for-profit
counterparts (Finkler, Smith, Calabrese and Purtell, 2016). The most important factor is ensuring
that the donated resources are used optimally, unlike the for-profit, which receives payment for
valuable healthcare services provided.
For government organizations, they must ensure that tax payer's money is managed
optimally towards public good health outcomes that affect the health system on a larger scale.
The financial management is more flexible and budgeted within government approximations. For
example, the Center for Disease control plays a significant role in tacking and addressing
regional health challenges of a broader scale and promoting research. Therefore financial
management basically aims at meeting more significant needs. Then there is the issue of
taxation. The for-profit hospitals are regularly taxed by local gove...
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