Question
Please answer the following question in 500 word count in your own words Please cite all reference The board of directors of your for-profit hospital
Please answer the following question in 500 word count in your own words Please cite all reference
The board of directors of your for-profit hospital has been approached by a nonprofit hospital to consider a joint venture to take over their business resulting in a larger for-profit medical center status. You have been asked to construct a financial risk analysis for this conversion. Using course materials, including your text and the Internet, and principles of financial risk analysis, evaluate the considerations that a nonprofit hospital has in considering the conversion to a for-profit hospital.
Consider the following topics in your discussion:
- Key characteristics of nonprofit hospitals that differ from for-profit hospitals
- Include the characteristics required to maintain a nonprofit status.
- The need for shifts in corporate structure required for survival in this environment, including safety net requirements and responsibilities
- Potential reasons driving both organizations and considerations between an outright merger verses a corporate alliance or joint venture.
- Assessment of the payer mix, financial benchmarks of nonprofit and for-profit hospitals
- Consider uncompensated care burdens within the for-profit model
- Proffer a decision based on your analysis of whether the organization should convert, create a joint venture, or decline the offer with rationale and justification.
Your paper must include your financial information derived in your risk analysis as an appendix included after the Reference page.
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