Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Running Head: CAPITAL INCOME SOURCES
Capital Income Sources
Angela Jones
California College San Diego
Healthcare Financial Administration HCA 375
April 8, 2017
Kane
CAPITAL INCOME SOURCES 1
Capital Income Sources
Any healthcare facility and even most operational entities period, are going to have a
primary focus of earning capital. For a for-profit company, capital is obviously their source of
profit. For a non-profit organization, capital is directly the source of their operational budget.
The difference between the two is that one is responsible for shareholders and is going to
maximize profitability, and that the other is going to maximize their ability to provide services
based on their ability to obtain capital.
For-Profits
The vast majority of profits in a for-profit healthcare facility come from insurance
payments. This means bills made to insurance companies for patient care services. According to
the Florida Agency for Health Care Administration (AHCA), operating revenue represented 91%
of all the money earned by hospitals in the state of Florida. (Florida hospital government &
