Question

Background or Scenario:

Sisters Charity Hospital (SCH) is located in a diverse and highly-populated area. The patients are disproportionately lower-income, many eligible for state public aid and Medicaid healthcare insurance. In addition to this population, the hospital serves a high number of poor and elderly patients, many of whom are covered under the Medicare program, and some of those who also have Medicaid insurance, being dually eligible for both government health insurance programs.

SCH is a tax-exempt, charitable organization formed under section 501 (c) (3) of the Internal Revenue Code.

Prompt:

SCH generates about $675 million in operating revenue, provides over $85 million of so-called “community benefit” to the community (free and lower-cost services based upon the patient’s income), and ekes out an operating margin of about 0.5%. The average operating margin for more prosperous non-profit hospitals in surrounding communities is about 2.5% to 3%. Review Chapters Four (4), Five (5), and Fourteen (14) in your textbook for guidance. Also, please explore the parts of the Social Security Act that describe the concept of being “under arrangement.” You can find these two sections here, at 42 USC §1395(x)(w) and 42 USC §1395(x)(b)(3).

2. Research and discuss two to three viable options the hospital may have to expand revenue given its status.

Answer 1

1. since you are not charging/ charging less for treatment, in order to improve the revenue you can start other basic need centres, like hospital canteen, juice shop, baby needs, basic stationaries like soap, brush etc. both this stationary and food court have to be in every floors then only people get attracted again and again for the food. make the premises and external looks very neat and attractive. This is an all-time income.

2.charge a small amount like 10 dollars for the initial op ticket alone, since you have a lot of clients it will be big revenue for the hospital. make a SCH card with a validity of one year, so that you get a big amount every year when the renew. Still the treatment given is free.

3. start a free medical insurance and aids applying counter inside the hospital so that everyone can apply for insurance and medical aids, again the money will be paid to the hospital. this one avoids the patient’s headache on the hospital expenses and hospital doesn’t need to worry about the economic situation of the patients.an equal - equal deal