ABSTRACT

This chapter discusses the linkages among the various providers of care and addresses the role of reimbursement policy and information technology in integrating providers in order to reduce costs and improve quality of care. It discusses the organizational structures under which providers function. Terms that are often used to describe healthcare organizations are private and public when describing healthcare providers. Most hospitals and organizational providers of care are considered private hospitals. Government/public hospitals and clinics are those that are operated by federal, state, or local governments. Healthcare organizations that are established as for-profit entities typically are eligible to receive tax-exempt status; other not-for-profit entities, on the other hand, function as taxable organizations. Not-for-profit hospitals and health systems operate under the financial principle that no net revenue or profit is paid to individuals or organizations based on investment in, or ownership of, the nonprofit organization. Mental health hospitals may be owned by either a governmental or a private entity.