Describe Legal Structure Of Healthcare Organizations

Source paper: Legal structures of health organizations
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Abstract
Management encompasses creating a homogeneous working environment while effectively making use of the available resources to realize set goals (McMahon et al., 1992).
The county requires a local hospital and the three available options for financing the project include government-owned or a not for private profit hospital or a for-profit privately owned hospital. It is good to understand that hospitals and other service providers in the health sector are legal entities because they are legally mandated by government to operate and have both legal and management structures. There are six types of legal entities and choice of any of the legal structures depends on the related policy framework. These types include health organizations which are government owned, those that are not for profit, for profit, partnerships, limited liability companies and those that are sole proprietorships. Not considering the type of entity, there must be clear structures with a governing body, usually referred to as a management board and an executive officer, who oversees its operations.
Introduction
A well-managed healthcare system is desirable to effectively and safely dispense services within hospitals, dispensaries, and other health service providers. The divergent proposal, in this case, has to take consideration of the existing situation in the county and the expectations of the commissioners such that once a choice is made, it should be a mitigating factor to the beneficiaries. Governance structures of corporations are anchored in law and set regulations spells out their mandates and limitations.
They can further be categorized in two clusters; as those that are incorporated or as those that run on a statute. Most county run institutions are constituted using statutes and ordinance for the sole reason that their liability is limited to the extent of their resources.
It is important to consider the fact that corporations exist in perpetuity. This implies that their directorship and ownership can be transferred easily in case of death or resignation.
Public Hospital Operated by the County
A public hospital is a government-owned entity whose establishment is anchored in the county's statutes and local ordinances. These statutes spell the mandate of its management as well as its limitations. The hospital is allowed to enter a joint venture or even guarantee to finance for desired projects.
According to Steiner, Jr. Esq., in his publication, the ‘Organization of the healthcare delivery system', some statues give guidelines on provision of services as in some instances they cannot enter contractual obligations with external organizations. In some other occasions, the institutions' management is barred from involving themselves in insider trading. This is commonly referred to as ‘conflict of interest.'
Other laws governing the management of public entities provide a window for managers to limit spending regardless the source of their funding (Steiner Jr. Esq., p29), while others have forbidden state lending to county-owned hospitals because they are regarded as quasi-government. In a ...