Healthcare Finance: Investor-Owned, Non-Profit, and Healthcare Reform

This assignment delves into the realm of healthcare finance, contrasting investor-owned and not-for-profit corporations, and exploring the implications of healthcare reform. The solution outlines the key differences between the two types of corporations, focusing on ownership, taxation, and financ...Read More

Running head: HEALTHCARE FINANCE 1
Healthcare Finance
Name
Date
Institution
Investor-owned corporations are owned by individuals who benefit from them. These
owners are typically the shareholders of the organization. They get financial benefits from the
profits produced by the business. Investor-owned businesses are valuable when there is little

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liability and minimum risk endured by investors, when there are opportunities for growth and
when it is fairly easy to liquidate. Investor-owned corporations have three distinct features; the
residual earnings from the corporations belong to the owners, the ownership of the corporation is
well defined, and the corporation is taxed at all levels including local, state and federal. Not-for-
Profit corporations are also sometimes called tax-exempt. Unlike investor-owned corporations,
they are not owned by shareholders. They are instead controlled by a broad of trustees and are
exempt from taxation, which means they can issue tax-exempt debt.
Main provisions of healthcare reforms
 Increased number of insured people
 Affordable health insurance
 Improved access to healthcare
 Reduced health disparities
Healthcare reform changes the financial landscape especially for insurance companies. For
instance, the ACA employed new regulations on policies for insurance companies (French et al,
2016). They were not allowed to charge high premiums or deny insurance to patients who have
pre-existing medical conditions. Furthermore, changes in taxes and financing to ensure
affordability.
These reforms are very beneficial to the patients as they promote preventive care, allow for
coverage of patients with preventive services and subsidize insurance to ensure more people are
covered. The results of these measures should be enhanced quality of care, reduced chronic
conditions due to more preventive measures and increased coverage.

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References
French, M. T., Homer, J., Gumus, G., & Hickling, L. (2016). Key Provisions of the Patient
Protection and Affordable Care Act (ACA): A Systematic Review and Presentation of
Early Research Findings. Health services research, 51(5), 1735–1771. doi:10.1111/1475-
6773.12511