Chapter 7
Healthcare Organizations
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Objectives
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Identify and compare characteristics that are
used to differentiate healthcare organizations.
Classify healthcare organizations by major
types.
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Objectives (Cont.)
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Analyze economic, social, and demographic
forces that drive the development of
healthcare organizations.
Describe the impact of the evolution of
healthcare organizations on nursing
leadership and management roles.
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Characteristics and
Types of Organizations
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Institutional providers
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Types of services
Length of direct care services
Teaching status
Accreditation
Ownership
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Not-for-Profit vs. For-Profit
Healthcare Organizations
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How does ownership impact healthcare
organizations?
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Not-for-Profit
Healthcare Organizations
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Controlled by voluntary boards or trustees
Provide care to a mix of paying and
nonpaying patients
Excess revenue over expenses is redirected
into the organization for maintenance and
growth.
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For-Profit Healthcare Organizations

Operate with the specific intent of earning a
profit by providing healthcare services to
individuals who can afford to pay
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Characteristics and Types of
Organizations (Cont.)
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Accountable Care Organizations
Consolidated systems and networks
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Characteristics and Types of
Organizations (Cont.)
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Other organizations
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Community services
Subacute facilities
Home health
Long-term care and residential facilities
Hospice
Nurse-owned and nurse-organized services
Self-help voluntary organizations
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Characteristics and Types of
Organizations (Cont.)
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Supportive and ancillary organizations
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Regulatory agencies
Accrediting bodies
Third-party financing organizations
Pharmaceutical and medical equipment
Professional, educational, and training
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Characteristics and Types of
Organizations (Cont.)
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Organizational relationships
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Integration
Acquisitions and mergers
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Forces That Drive Organizations
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Economic
Social
Demographic
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Theoretical Perspective
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Systems theory
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Structure
Technology
People
Environment
Chaos theory
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Universe filled with unpredictable and random
events
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Economic Forces
Influencing Health Care
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Increasing numbers of uninsured patients
Decreasing reimbursement
Regionalization
Focus on pay for performance
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Social Factors Influencing
Health Care
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Focus of society that is changing from illness
to health (wellness)
Increasing demand by individuals that they
participate in designing their own customized
care plans
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Demographic Factors
Influencing Health Care
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Increasing percentage of society that is
composed of elderly individuals
Increasing percentage of uninsured
Inability of communities to provide access to
needed health services
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The Spectrum of Health Care
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Primary Care
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Purpose
• Early detection and prevention of disease
• Maintenance of health and wellness
• Management of common health problems and chronic
illnesses
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Examples of Organizations
• Healthcare provider practices
• Community and neighborhood clinics
• School and occupational health offices
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The Spectrum of Health Care (Cont.)
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Secondary (Acute) Care
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Purpose
• Diagnosis and treatment of disease and injury
Examples of Organizations
• Acute care hospitals
• Long-term care facilities
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The Spectrum of Health Care (Cont.)
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Tertiary Care
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Purpose
• Diagnosis and treatment of complex disease and injury
Examples of Organizations
• Acute care hospitals with specialty units such as
coronary care or transplant units
• Specialty hospitals such as psychiatric facilities
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The Spectrum of Health Care (Cont.)
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Respite Care
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Restorative Care
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Purpose: To provide caregivers of chronic care
patients a short-term period of relief
Purpose: To provide routine follow-up for acute
conditions (e.g., nursing home care), or for
conditions such as drug rehabilitation (e.g. halfway house)
Continuing Care
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Purpose: To provide ongoing care for those who
need assistance with activities of daily living (e.g.,
geriatric care centers)
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Understanding the type of healthcare
organization in which you practice helps you
understand the populations served, the
availabilities of healthcare providers, the
concerns of owners or taxpayers, and how
forces are likely to change the organization in
the future.
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