HA4070D – Regulatory Environment in Health Care

HA4070D – Regulatory Environment in Health Care
Assignment 08.2: Choosing
 
Directions
Complete the Problem on page 431 in the text titled “Choosing a Corporate Form” in a one to two-page paper. Submit your solution to your instructor. See the document for the background on Marcus Welby Hospital here.
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 constraints?
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