MHA612 week 2 discussion

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School

Ashford University *

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612

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Information Systems

Date

Jun 18, 2024

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docx

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2

Uploaded by JudgeMusicAnteater18

Define major components of a corporate compliance plan, such as establishing internal controls associated with finances and decision-making processes. A corporate compliance plan ensures adherence to legal and ethical standards and consists of several key components: leadership, risk assessment, standards and controls, training and communication, and oversight (Cleverley & Cleverley,2018). Leadership sets the moral tone, with senior management and the board demonstrating a commitment to compliance and appointing a compliance officer to manage the program. Risk assessment involves identifying and prioritizing legal, regulatory, and ethical risks and developing mitigation strategies. Standards and controls include creating comprehensive policies and procedures for behavior, financial reporting, data privacy, and anti-corruption, as well as establishing internal controls and a code of conduct accessible to all employees. Training and communication entail regular, role- specific training sessions and effective channels for disseminating compliance information and reporting concerns anonymously. Oversight involves monitoring, auditing, reviewing the compliance program, reporting and investigating issues, and updating the program to address new risks and regulatory changes. This integrated approach helps companies manage obligations, mitigate risks, and maintain a culture of integrity and accountability. Analyze the five factors a hospital needs to qualify for tax-exempt status. To qualify for tax-exempt status, a hospital must meet several critical criteria outlined by the IRS. First, the hospital must operate exclusively for charitable purposes, focusing on providing healthcare services to the community without a profit motive. Second, the hospital must provide community benefits beyond uncompensated care, such as health education, outreach programs, research initiatives, and services that improve community health. Conducting regular community health needs assessments (CHNAs) is essential to identify and address the population's health needs (IRS,2023). The third criterion involved is the hospital's governance, which must reflect its charitable status. The board of directors should mainly consist of independent community members rather than individuals with financial interests in the hospital, ensuring decisions are made in the community's best interest. Fourth, the hospital must comply with IRS regulations regarding private inurement and private benefits. This means no part of the hospital's earnings can benefit private individuals or entities, ensuring all income furthers the hospital's charitable purposes. Transactions with insiders must be fair, reasonable, and aligned with the hospital's mission. The final is that the hospital must adhere to all applicable laws and regulations, including those related to Medicare, Medicaid, and other federal healthcare programs. Compliance is essential for maintaining tax-exempt status and ensuring legal operation within the healthcare framework. Discuss three specific financial benefits for not-for-profit healthcare organizations. Not-for-profit healthcare organizations enjoy three vital financial benefits. Tax exemptions: Exemption from federal and state income taxes, as well as often from property and sales taxes, frees up resources for patient care, facility upgrades, and community health programs (IRS,2023) Funding through donations and grants: Charitable donations, often tax-deductible for donors, along with grants from government agencies and private foundations, provide crucial financial support for operational costs, capital projects, and community health initiatives (IRS,2023).
Tax-exempt bond financing: Ability to issue tax-exempt bonds for large capital projects like new facilities and equipment upgrades, which attract investors due to their tax advantages, resulting in lower borrowing costs and increased investment in healthcare services and infrastructure (IRS,2023) Summarize how antitrust could be associated with regulatory issues that affect the formation and operation of provider-based managed care organizations. The antitrust laws promote a competitive, free marketplace, protecting the public from the adverse effects of monopoly power and business practices that unreasonably restrain trade. The federal government and all state governments have antitrust laws, which reflect a public policy principle that a competitive marketplace protects consumers, restrains private economic power, and generally produces the best allocation of quality goods and services at the lowest prices (Cleverley & Cleverley,2018). References Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance (8th ed.). Jones & Bartlett Learning. Internal Revenue Service. (2023)Requirements for 501(c)(3) hospitals under the Affordable Care Act – Section 501(r) https://www.irs.gov/charities-non-profits/charitable- organizations/requirements-for-501c3-hospitals-under-the-affordable-care-act-section-501r
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