Marcus Welby Hospital

Marcus Welby Hospital

Marcus Welby Hospital: COMPUTER SCIENCE

Marcus Welby Hospital has decided to form an HMO in which it wants to give physicians a major stake, in order to foster allegiance and encourage cost-effective treatment. You are consulted as a legal and management expert to advise the hospital on the consequences of forming the HMO as a nonprofit versus a for-profit entity. What are the relevant considerations with respect to tax exemption, the ability to raise capital, the role of physicians, and operational constraint

 

 

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Marcus Welby Hospital has decided to form an HMO in which it wants to give physicians a major stake, in order to foster allegiance and encourage cost-effective treatment. However, there are many consequences of forming the HMO as a non profit versus a for profit entity. Firstly, the non profit entity will act as a restriction on diversification of revenues to the hospital. The main objective of the hospital being in business is to maximize profitability…………………….

APA

336 words