10 Oct First, identify a publicly traded for-profit health care company within the United States. This might be a company like HCA, Pfizer, Merck, Johnson & Johns
For this discussion, you will be required to do some homework.
First, identify a publicly traded for-profit health care company within the United States. This might be a company like HCA, Pfizer, Merck, Johnson & Johnson, Tenet Healthcare, Walgreens, etc. Go to the company website and locate the ‘investor relations’ page (names for this page may vary) and locate the financial information for the company. For publicly traded firms, the 10K provides the annual financial report. Company annual reports might also contain summarized financial information.
Second, identify a not-for-profit or charitable organization of your choice. This might include a local not-for-profit hospital system or other healthcare-related charitable organization. Go to the organization’s website and locate any financial information you can find. This might require more due diligence than what was required with the for-profit firm you chose. Annual reports might contain some financial information, but some organizations might also provide financial information on their website.
Once you have done the research on your two organizations, respond to the following questions:
- How easy was it to find financial information on each of the organizations you chose?
- What are 3 – 5 differences between the financial statements of each type of organization?
- Why do you think there is a difference in the level of financial detail provided by the two types of organization?
- In your opinion, should both types of organization have the same financial reporting requirements?
- Not-for-profits enjoy the benefit of not being taxed at the local, state, or federal level. In some cases, the level of local charitable support has not been sufficient for civic leaders. Has your charitable organization ever been challenged for the level of support they provide (do a Google search)?
- For-profit health care companies provide care but make a profit in the process. Are there any ethical considerations that are worth noting about for-profit health care? Does your chosen for-profit organization overcome any potential ethical concerns?
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