QUESTIONS AND ANSWERS
What is a community health organization - ANS organizations involved in providing health
information, education, resources, policy, services, and care
2 main types of health models - ANS 1. medical model: focuses on diagnosis and treatment
of disease
2. wellness model: focuses on the prevention of the disease
Health trends in the U.S. compared to other countries - ANS America has above average
spending and below average life expectancy. Japan has a high life expectancy and they also pay
less for healthcare.
Not-for-profits - ANS * business oriented
* owned by the community, not the investors
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 1
,* serve community, not maximize profit
* profits are invested back into the organizations or held as cash reserves
* usually tax exempt from federal and property taxes
* provide public benefit
* services may not be profitable - large number of uninsured/underinsured patients
* in addition to patient revenue: fund raising, grants, donations
* can be registered as a corporation
*
Not-for-profits exemption - ANS * 501(c)(3) public benefit corporations
* various charitable, non-profit, religious, and educational organizations
* provides donors of 501(c)(3)'s deduction for federal taxes
* gifts must be verified
Not-for-profits exemption criteria - ANS * establish written financial assistance and
emergency medical care policies
* limit amounts charged for emergency or other medically necessary care to individuals eligible
for assistance under the hospital's financial assistance policy
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
, * make reasonable efforts to determine whether an individual is eligible for assistance under
the hospital's financial assistance policy before engaging in extraordinary collection actions
against the individual
* conduct a community health needs assessment and adopt an implementation strategy at
least once every three years
* not-for-profits tax must be a corporation
* unrelated business income is taxed
* can lose not-for-profit status
* often activities don't break even revenue
* exist primarily to provide programs and services of benefit to others, not provided by the
government
For-profit - ANS * investor owned, profits are main objective
* reinvested or redistributed to investor owners
* while providing quality service, managers are expected to maximize shareholder wealth
* company and the shareholders pay taxes
* can turn away non-emergent patients
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 3