Organization of a Health Care Facility
Health is a constitutional right and every person is required to access to good health
facilities. Setting up a new specialty health facility requires good understanding of the
operations. This discussion therefore focuses on various aspects relating to setting up of a new
specialty health facility and other aspects relating to clauses that concerns medical staffs and
hiring plan among others.
Advantages and disadvantages of incorporating
The new specialty health facility will be incorporated to ensure that it provide better
services to its clients. Incorporation concerns various kinds of legal entities such as individuals,
groups and corporations. Corporations have a different legal status from the individuals or
business that contributed in their set up. This therefore means that incorporating the new
specialty health facility will imply that it will have same legal rights as the owner but at the same
time, it will be different from the owner. Incorporating a business has various advantages as
One of the advantages of incorporating a business is to ensure that its operations don’t
end when the owner passes-away. This is different from other kinds of companies whereby the
chances of a business closure are high when the owner dies. In this arrangement, it does not
matter whether the owner, the executive officer, or a shareholder dies, as the business will
continue with its operations (The Company Corporation, 2001). A health care is a facility that is
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of great important to the members of the society. As a result, there is no reason as to why it
should close when the owner dies. The facility will have this type of immunity which is an
advantage to the clients and other interested stakeholders. It is possible for the ownership of the
facility to be transferred to another person through the sale of stocks and this ensures continuity.
The second advantage of incorporating the facility is that it provides a cover to the
shareholders from being held responsible or accountable for the debts incurred in the facility
(The Company Corporation, 2001). There are a times that the facility many borrow funds to
engage in various projects and then fail to honor the agreements. Such incidences may lead to
legal action that would otherwise affect the service delivery in the facilities. Shareholders are
protected and therefore not liable as this is the obligation of the corporation. They will only be
liable in case they have provided a personal guarantee for such incidences.
Incorporating a business allows a business to enjoy some tax-deductible benefits. In the
case of the healthy facility, it is given some benefits such as life insurance and health insurance
taxes. This is tax reprieve to the facility because it enables it to save on such costs. Another
advantage is that it appeals to the investors. Investors have strong confidence in corporations as
opposed to sole proprietorship and partnerships because they can easily lose their investments in
case the business is bankruptcy (The Company Corporation, 2001). Therefore, this allows the
company to seek funds from investors helping in enhancing the services provided. There is also
anonymity associated with incorporating a business. The owner is allowed to use other people
names hence enjoying these privileges. Likewise, there are disadvantages associated with
incorporating a business.
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Establishing an incorporated business is expensive as it requires high startup capital. This
therefore, makes the time of setting up the business longer. The business must bear with the
lengthy legal process to be cleared. All these processes consumes a lot of time. The costs are
further increased by the complex legal structures, which must be satisfied. There is double
taxation of incorporated businesses. This double taxation rises when the income generated at the
corporation is taxed at the corporate level and at the shareholders level. The corporate as an
entity is obliged to remit its taxes on the income and shareholders likewise are obliged to pay
their taxes on the dividends they accrue.
Furthermore, the owner of the business losses ownership the moment the business in
incorporated. The shareholders become the new owners and have authority to be included in the
decision making of the company. The shareholders choose/elect the executive and members of
the board. Shareholders are also liable in case they fail to carry out their tasks in accordance
with the requirements or regulations of a corporation. In such circumstances, they remain liable
for the debts incurred. They are also liable if they fail to hold annual meetings, record their
transactions, elect new directors and issue stock certificates. Regardless of these disadvantages,
incorporating the facility is still more beneficial and the best choice.
The new specialty facility is a profit making organization. The facility will make profits
or generate revenue from the services it provides to the clients. It will also participate in other
profit making projects as an alternative source of income to help enhance the services (Song,
Cleverly & Cleverly, 2010). Nonprofit organizations mostly rely on donations and well-wishers
and sometimes they are unable to provide services to the clients because of insufficient funding.
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This problem is not expected. The services provided will be of high quality to compensate the
value or the cost. Qualified personnel and improved technologies are used to provide this quality
The fact that the facility is for making profit does not in any way hinder its ability to
provide quality services. On the contrary, this will ensure sustainability of the clinic to provide
better services. Patients and other stakeholders must be satisfied. Clients would not trust the
facility if its services are non-committal to quality. The management of the facility must act
above board in ensuring that the services provided are at par.
A contract is an agreement normally entered between various parties of interests. It is
authorized by the law. It is important to the clinic and medical staff that will serve in the facility
among other parties to enter into a contract to ensure that they adhere to the guidelines and the
procedures established (Kongstvedt, 2001). Most of the contracts take on similar formats as most
begin with a preamble and then a short introduction then body. The body contains the gist of the
contract as it covers the terms of the contracts, this section is followed by provisional section
that handles administrative services and the contracts is concluded with the signatures of the
parties. This signatures are an evidence of their committment to adhering to the contract
The agreement was signed on 20 th of July 2013 by the facility as the first party having its main
office in Washington D.C and the second party.
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The facility is a profit making organization and provides different medical service to patients. It is
situated on the 15 th street Washington DC. The services provided include inpatient and outpatient.
It has professional team of health provider who are specialized in various areas including, surgery
and heart diseases, respiratory disease, gynecology, dermatology and gastroenterology.
The following are the agreements and covenants that both parties have agreed to be biding
- Medical staff will be employed on full-time basis and will be assisted by the physicians.
Physicians consent to provide services such as therapeutic, diagnostic and others in their
respective areas of specialty. The terms and conditions of inclusion rest solely with the
policies and procedures of the facility.
- Physicians must be satisfied and approved by the state to be fit to carry out their services.
Furthermore, must be approved to dispense medicines as per the federal laws that govern
drugs and medicines and participate in Medicare and Medicaid programs. They should also
be ready to partake in related activities such as teachings and meetings if called upon
- All physicians will render medical care services in accordance with the standards that
govern healthcare provision. They will further be required to control treatment, diagnosis
and the hospital will not interfere in their duties but must be carried out as per the policies
and procedures of the facility
In the midst of witness, all parties agree to abide by the agreement above
First party, Second party
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Plan to hire or appoint specialists
Employees are the most valuable assets in a business. They have the potential of ensuring
that the organization achieves it goals or not. The hiring plan is therefore one of the more
fundamental things that organizations should invest in to hire competent and qualified personnel
(Hernandez, 2009). Many organizations have failed to attract or identify the right personnel because
of poor plans. In a health facility, ensuring that the best physicians and medical staff are hired is
essential as this guarantees a high quality of service. An appropriate hiring plan will help the
organization to get qualified personnel to help it achieve its goals and at the same time provide high
quality services to the clients.
In the hiring plan, the first consideration is for the human resource manager to identify the
needs of the organization and the kind of people that can be able to help it accomplish its
objectives. This will enable the human resource manager to come up with specific qualities or
qualifications that the candidates need. After drafting the specifications or qualifications, which will
factor in academic qualification, experience and competence, the jobs will be advertised to the
public domain through various media. Candidates interested will tender their applications for
consideration. Selection will begin, as qualified candidates will be recruited to put into
consideration the number required and their qualification. All the candidates will be screened to
ensure that they are the right candidates. Interviews will be conducted to find out whether they are
qualified and ready to take on the new responsibilities. Those who will be successful in the
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interview will be appointed to various positions to help the facility in meeting its objectives. They
will be required to enter into contract with the facility to ensure that’s they comply with the policies
and procedures. Another way of ensuring that the facility gets qualified and experienced personnel
is through head-hunting (Hernandez, 2009). The human resource manager will have to identify
some of the best physicians in the states, approach them, and negotiate on the working terms. If
such physicians accept the terms, they must sign a contract to ensure that they perform their
services in accordance to the contract and the policies and procedures of the organization. All the
staff must be committed members and dedicated to ensuring that they provide better and quality
Medicaid and Medicare as pay source
The cost of accessing healthcare has tended to increase and this has led many people fail to
seek quality healthcare and in the event affecting their health situations. Thanks to the Medicaid and
Medicare, many people are now able to access to quality health care services. There are a good
number of patients who are unable to pay their hospital bills because they lack healthcare insurance
and some have inadequate income at their disposal. With Medicare, all the eligible persons are
assisted with their medical bills and can access to good medical services (Bryan, 2004). The
advantages of these covers are that they save and protect patients from financial crisis as they are
covered by healthcare insurance. Part A of the Medicare allows all eligible persons to access
inpatient care for some time. Patients under this scheme are not required to pay for their monthly
premium. Part B of the cover concerns outpatient service and therefore, patients are entitled to
doctor or nurse visits.
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Even though individual medical needs and ability to pay dictates the terms, the kind of
services a person is entitled, the covers have been of great important in ensuring that disadvantaged
people also access to medical care. The states and federal governments are supportive as they cater
for part of the bills. This is a sign of commitment of the government to ensure that high quality
medical care is achieved. It also shows government commitment to ensure that every citizen is able
to access to quality medical care at an affordable rate. Though some quarters opposed to these two
arrangements in the grounds that it did not favor the poor because they were required to pay a
certain percentage for the cover, the cover so far have proven to be effective and good in promoting
equality in accessibility to medical services.
The new facility has no reservation in accepting Medicaid and Medicare payment sources.
After all, it is the duty of the facility to provide services to patients both the poor and the rich.
These payment sources are eligible and are supported by the government and therefore, they should
be accepted to ensure affordability and accessibility to medical care. Furthermore, many clients
nowadays are paying their bills through Medicaid and Medicare and it is omnipotent to accept
them. This will also help to improve the profitability of the facility, as more clients will be able to
visit it for medical treatment.
In conclusion, it is prudent for a health facility to put in place appropriate structure to
ensure that it provides quality services. Customers will only be motivated to move to a facility
whether for profit or not for profit if it provides better quality services. The staffs hiring plan should
help in recruitment of competent and professional personnel to help in the achievement of the
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Bryan, P. (2004). Medicare and Medicaid Fee-For-Service Payments. Nova publishers
Hernandez, S. (2009). Human Resources Management. Cengage Learning
Kongstvedt, P. (2001).The Managed Health Care Handbook. Jones & Bartlett Learning
Song, P., Cleverly, J., & Cleverly, W. (2010). Essentials of Health Care Finance. Jones & Bartlett
The Company Corporation. (2001). Incorporating. John Wiley & Sons.