Question

Describe the various sources of funding beyond third-party reimbursement from which the various types of healthcare facilities can benefit.Describe the various sources of funding beyond third-party reimbursement from which the various types of healthcare facilities can benefit.

Answer 1

Healthcare facilities can benefit from other sources of funding such as grants, government programs, commercial loans, private investments and endowments, shares of stock, and secured bonds. Grants are “moneyies provided under very specific terms”. Grants are offered through public or private sources and some might be given with the option that it doesn’t have to be paid pack. Certain government programs have been developed to assist doctors and health care facilities to keep up with the changes and evolution of health care with incentive programs such as PQRS. Commercial loans are loans provided by banks. Commercial loans permit health care facilities to borrow money, needed to make renovations or improvements, and eventually pay it back with interest. A private investment is an individual endowing money to an individual or organization. These investments can come in the form of a onetime gift or a large donation that can be dispersed over the years. Share of stock is percentage of ownership of a company. This means that people can buy a small percentage of the company and they are entitled to receive profits from the company. Buying a percentage of the company is a source of funding but it is also and unsecured investment and the buyer could suffer losses if the company fails. Secured bonds are an investment vehicle backed by another asset. An example of that is if someone put their house up as collateral to bond a family member out of prison.