Types of health care organizational structure
HCA 545 Module 1 Assignment Strategic Management and Organizational Change
1) Write a paper (1,000-1,250 words) that addresses types of health care organizational structure and how each type of structure impacts the process and effectiveness of change. Address the following:
a) Why it is necessary for a health care organization to develop a strategic management model that addresses both the concept of change necessary for the growth and sustainability of the organization, and the processes of changing, that is, how does the organization go about accomplishing change?
b) Differentiate between organizational change and transformational change.
c) Where might an organization obtain examples of leadership models that have proven successful in today’s health care environment?
d) Identify and explain tools and advice that can be utilized to assess leadership effectiveness.
2) Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
3) This assignment uses a grading rubric. Instructors will be using the rubric to grade the assignment; therefore, students should review the rubric prior to beginning the assignment to become familiar with the assignment criteria and expectations for successful completion of the assignment.
ADDITIONAL DETAILS
Types of health care organizational structure
Introduction
The structure of a health care organization is the way in which it’s organized and governed. The purpose of this article is to discuss the different types of organizational structures that exist in health care and how they work together to help provide quality care for patients.
Partnership
A partnership is a legal relationship that creates a business entity. Partnerships are formed by filing articles of incorporation with the state or territorial government, which grants each partner an equal share in the company. The partners’ interests and obligations are defined in their agreement, which can be written down or oral (although this is less common).
When one partner dies or moves out of state, it’s not uncommon for the remaining partners to choose to dissolve their partnership rather than keep operating as one entity with two heads. This decision should be made after careful consideration; if you plan on making changes within your organization that could negatively impact others’ involvement with your company, try talking through them first!
Limited liability company
Limited liability companies (LLCs) are a legal structure that provides limited liability to its members. Members are not personally responsible for the debts and obligations of the LLC, which means that if you run into trouble with your business or get sued, your fellow LLC owners will be on the hook for only their share of any damages.
This can make sense if you have a small number of people who want to set up an LLC together and don’t mind sharing liability risks with each other—but it’s also useful in other circumstances where there’s no one person who needs protection from financial loss or exposure. For example:
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You might form an LLC for yourself and one other person with whom you plan on doing business together; this allows both parties complete control over how much money goes into it at any given time without worrying about any potential problems caused by overpaying taxes or missing out on tax breaks due simply because they didn’t file properly before starting up their business.*
Sole proprietorship
The sole proprietorship is the simplest form of business organization. It is an unincorporated business owned by one individual (the sole proprietor). There are no shareholders, employees or managers in this type of business structure; all governance responsibility rests with its owner.
In addition to unlimited liability for debts and obligations incurred by the business, sole proprietors also have personal responsibility for all actions taken by their company as well as any decisions made at board meetings or shareholder meetings held under their name alone.
Corporation
A corporation is a legal entity owned by shareholders. The shareholders have limited liability, meaning that they cannot be sued for the actions of the corporation. The board of directors hires officers to manage the business and day-to-day operations, but it’s up to each individual shareholder to decide what policies and procedures should be followed at their company.
Corporations can be privately or publicly held:
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Privately held companies are owned by a single person or group of people who typically don’t disclose their names publicly; they’re also usually smaller than larger publicly traded companies (the most common type). This type of organization may not pay dividends on its shares because there isn’t enough money coming in from sales or investments made by employees; however there are some exceptions where this rule doesn’t apply—for example if you were running something like Starbucks Corporation where all profits go towards expanding into new markets around the world!
Cooperative
A cooperative is a business that is owned by its members and run for their benefit. Cooperatives are owned by the people who use them, so they’re usually consumer, worker or producer cooperatives.
In a consumer cooperative, consumers buy shares in the business and have a voice in how it’s run. In this type of organization, all income goes back into the business; no profits are shared with investors until after expenses have been paid off (typically 5-10 years). The more shares you buy into a company means more say you have over decisions made about how your money will be used. If there are fewer members than allowed per share price then those who can afford them may end up paying higher fees than others who can’t afford them yet still get access to services at lower prices due to economies of scale being realized through economies of scope (i.e., having fewer employees saves money).
Not-for-profit (tax-exempt) organization
A not-for-profit organization is a type of non-profit organization that does not have to pay taxes. In other words, it’s exempt from paying income tax on its profits. Not-for-profits are not allowed to distribute dividends and must be run for the public good, rather than for profit.
The IRS defines a nonprofit organization as “a group of individuals or entities organized and operated exclusively for philanthropic purposes.” To be eligible for tax exemption under Section 501(c)(3) of the Internal Revenue Code (IRC), an organization must meet certain criteria:
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It must be organized and operated exclusively for charitable purposes (not political)
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It may not receive substantial support from any government entity or political party
Takeaway:
The organization is a tax-exempt, not-for-profit organization.
The organization is a cooperative.
The organization is a limited liability company (LLC).
The organization is a corporation.
Conclusion
The most important thing to remember is that you should think about your business structure as long before you start looking for a healthcare provider. There are many different types of businesses in the healthcare field, and each type has its own pros and cons. It’s always good to know what kind of organizational structure fits your needs best before making any decisions about how it will be run and managed.
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