Week 2 Discussion Post 28 Document

What are some business and financial implications of the differences

between community not-for-profit hospitals and large academic medical

centers that may affect staffing, programs offered, and policies and

procedures?

“Academicmedicalcentersarewidelyrecognizedasvital

componentsoftheAmericanhealthcaresystem,generally

differentiatedfromtheircommunityhospitalpeersbytheirtripartite

missionofclinicalcare,education,andresearch.Community

hospitalsfillacriticalandcomplementaryrole,servingastheprimary

sitesforhealthcareinmostcommunities,(Radiol,2017.”)Academic

medicalcentersofferinnovativestateofthearttreatmentdueto

advancesinresearchwhilecommunityhospitalsaregearedtowards

moreoftheroutinemedicalcarethecommunityneeds.Academic

aresizableandhavesufficientfundstoexpandtheirsystemintothe

community.Communityhospitalsareresponsbileforthemajorityof

inpatientstays.

Academicmedicalcenters(AMCs)provideeducationandtrainingfor

thenextgenerationofproviders.Theyalsoserveassafetynet

hospitalsforat-riskpopulations.Academicmedicalcentersoffer

innovativeprogramsandattracthighlyeducatedphysicianstorun

theseprograms.“AMCsgenerallyhaveenoughcashflowandcapital

toenablethemtoinvest,takerisks,andovercomemistakes(HFMA,

2012.”)

Inrespecttostaffing,AccordingtoNurselabs,nonfor-profitpayall

hospitalprofessionalshigherthanfor-profithospitals.“Studyfound

thathospitalworkersaremorelikelytofeelvaluedasaperson,

receivepraiseandfeeltheirjobisimportantatnot-for-profitsthanat

for-profits(Nurselabs.”)“Physicians,whoareoftenattractedtothe

academicmedicalcenterduetoprestigeandtheopportunitiesit

presentstoteachandconductresearch,maynotbeasinvolvedin

caredelivery(HFMA,2012.”)



What financial impacts could result if a for-profit organization was built

within your community?

Implicationsofafor-profitorganizationsbeingbuiltwithinthe

communitywillbethattheybenefitfrominvestors’moneyandhave

moreflexibilityaboutwhichservicestheyoffer,oftenseekingmore

profitableonesaccordingtoMasterson.Nonfor-profitorganizations

donotpaytaxessothereforeneedtoproveacommunitybenefit.

For-profitorganizationswouldpotentiallyprovidecompetitionin

termsofattractinginvestorsduetothefactthattheyreturn

investmentsbacktothem.Thiswoulddriveawaycapitalfromnon

for-profitorganizations.Theywillalsotendtobuyoutnonfor-profit

organizations.



What are some of the financial benefits of being an academic facility

rather than a not-for-profit facility?

Financialbenefitsofanacademicmedicalcenteristhatthesecenters

generatealargeamountofmoneyintothenationalandlocal

economies..Theauthorsdeterminedthateverydollarspentby

academicmedicalcenterleadstoanadditional$1.30spent:That

windsupbeingatotalimpactof$2.30(Brandt,2009.”)This

“multipliereffect”isonparwiththatattributedtospendingbythe

NationalInstitutesofHealth;a2008FamiliesUSAreportshowed

thateachdollarspentbytheNIHonresearchledtoanaverageof

$2.21instateeconomicoutput.“U.S.medicalschoolsandteaching

hospitalsaresubstantialeconomicenginesintermsofjobs,statetax

revenuesandeconomicgrowth,”saidAAMCpresidentandCEO

DarrellKirch,MD



Resources

Brandt,Michelle,November2,2009.Academicmedicalcenters

boosteconomy

locally,nationally.https://med.stanford.edu/news/all-news/2009/11

/academic-medical-centers-boost-economy-locally-nationally.html





HFMAOctober2012.TheValueJourneyOrganizationalRoadMaps

forValue-DrivenHealthCare



Masterson,Les,May25,2017.Nonprofit,for-profithospitalsplay

differentrolesbutseesimilarfinancial

struggles.https://www.healthcaredive.com/news/nonprofit-for-

profit-hospitals-play-different-roles-but-see-similar-financ/442425/





NURSESLABS,SEPTEMBER2,2015.HowFor-ProfitHospitalsAffect

Staffing.https://nurseslabs.com/how-for-profit-hospitals-affect-

staffing/





Radiol,JAmColl,2017Jan;14,AcademicMedicalCentersand

CommunityHospitalsIntegration:Trendsand

Strategies.https://pubmed.ncbi.nlm.nih.gov/27815052/



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