Question

How does corporate ownership of a nursing facility affect the financial goals and operations of the facility compared with smaller, locally owned facilities?

Explain what it means for a facility to provide “objective evidence” of financial transactions? Why is this important?

Answer 1

Nursing and other medical facilities have a primary responsibility to serve the society at large by providing quality and affordable healthcare. The ownership structure of any such facility also plays a big role in providing such services. With a corporate ownership in the healthcare facility, the quality of services can be taken care of with ease since the organization wouldn' be concerned about the fincances available at its disposal. But, providing such services at affordable/reasonable prices would not be possible since these corporates who virtually own the medical facility would expect higher returns on their investments. As a result, the facility would have to provide services at high prices in order to earn high profits. In such a scenario, the services would be available only to a section of the society which is privileged and would be denied to the poor.