Identifying Types of Healthcare Organizations
Identifying Types of Healthcare Organizations
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Facing potential decreases in reimbursements from Medicare
and Medicaid, the hospital recognizes that it must seek ways to control cost.
As a result, you have suggested to the hospital administrator that it is
important that the leadership team have a solid understanding of costs
associated with business operations. Like most businesses, healthcare
organizations have both fixed and variable costs. Provide examples of
associated fixed costs and variable costs at the healthcare organization where
you work, or choose a healthcare organization such as a solo/group practice,
hospital, community health center, etc.
Identify the type of healthcare organization, and explain
why the cost is classified as fixed or variable.
Discuss why it is important for the healthcare organization
to understand, classify, and control these costs.
Define the term break-even analysis and its relationship to
managing costs.
Should healthcare organizations, especially nonprofits,
consider “break-even” costs in establishing rates and fees? Why or
why not?
Explain the role of fixed and variable cost in setting rates
or charges for services provided by the healthcare organization. Which do you
think is the most important, and why?
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