A local healthcare facility chosen for this discussion is Tampa General Hospital. TGH is a comprehensive healthcare facility situated in Tampa, Florida. The hospital’s exact location is on Davis Islands (Tampa General Hospital, n.d.). The hospital was established in 1927. The hospital opened with 186 beds, and during that time, it was known as Tampa Municipal Hospital (Tampa General Hospital, n.d.). Since its inception, the community that the hospital serves has grown greatly. TGH is one of the largest medical facility in Florida and currently, it has 1,011 beds (Tampa General Hospital, n.d.). The health care facility offers efficient services with an approximate number of 7,300 employees. The paper will examine the type of facility and its contracting situation.
The healthcare facility is a private non-profit hospital. The not-for-profit status of Tampa General Hospital implies that the health care facility reinvest in the hospital any surplus funds they generate. The facility uses the funds for improvements, training, and purchase of equipment. On the same note, the hospital is affiliated with a training college called Morsani College of Medicine. The hospital recruits approximately more than 300 people for specialty training. Therefore, the surplus funds are used to ensure that the training sessions are performed successfully. The obligation of the organization is to invest the profits realized (Brady, Brace‐Govan, Brennan & Conduit, 2011).
By being a non-profit organization, Tampa General Hospital does not pay state and federal taxes on property and income. The health care facility is exempted from paying taxes. Moreover, the tax-exempt bond of the hospital is always issued on their behalf. The hospital is required to report the community benefits it offers. Tampa General Hospital has a charitable responsibility to the community around. Precisely, the hospital provides charity care, financial and subsidized health services. Moreover, it contributes to community health improvement, research, and health education.
Tampa General Hospital is the region’s leading safety hospital and it focuses on providing the community with excellent and compassionate health care. Besides, the hospital deals with simple and sophisticated medical services. The mission of the facility is to ensure delivery of complete health services. The services that the hospital delivers are primary care, complex specialty care and post-acute services. On the same note, services offered by the hospital reflect a patient-centered approach. The objective is to ensure that patients receive respectful care. A medical facility should provide high-quality services that align with the needs, values, and preferences of patients. Tampa General Hospital delivers its services in an exceptional manner by considering cost-effectiveness, clinical outcome, patient experience and care processes. The organization’s unique blend of academic partners enables it to support medical research and education in the region.
Additionally, the hospital focuses on community engagement. The hospital supports the community by offering programs that improve the health of people. Precisely, the hospital provides free health education program and screening to residents. The organization’s affiliate, USF Health Morsani College of Medicine play a critical role in ensuring there is enough staff in the facility to attend to all patients.
Some of the services that the hospital offers include the following. First, Tampa General Hospital provides organ transplant. Statistics shows that the hospital is among the leading organ transplant centers in the U.S. Tampa General Hospital has performed more than 6,000 organ transplant on adults. Other magnificent services offered by the hospital include vascular services, cardiac, infectious diseases services, psychology and neuropsychology, cancer center and rehabilitation.
The type of contract Tampa General Hospital is likely to have is the cost-reimbursement contract. This type of contract encompasses a case where payment is made for allowable expenses up to the set limit. Besides, the contractor is given additional payments so that the organization can make profits (Wang & San Miguel, 2013). Moreover, under this contract, the agreement is that the contractor will offer the best to complete the contract. The contract prescribes the allowable incurred costs that should be paid. The contracting situation starts when Tampa General Hospital submits a bid then engages in a competitive negotiation for a government contract. Moreover, when contracting with the government, Tampa General Hospital must ensure that it invests and sustain strong internal controls. This will help the health care facility to provide accurate and timely financial information.
The facility is likely to have this type of contract because one of its largest expenditure is labor. The organization must sufficiently train employees to increase their knowledge of the payroll procedures. All the labor charges to the government contracts must pass through daily time recording (Wang & San Miguel, 2013). Another reason for contracting includes the indirect cost rates. These include facilities and administrative costs. The development of the indirect cost rate system depends on the size and type of the organization. Since the indirect cost rate results in a pervasive impact on the contract, net assets and the revenue generated, the organization should consider it when implementing the strategic business plan. Lastly, the organization is likely to use the contract because it has a higher concern long-term quality compare to the cost. In this contract, there is no need for contractors to inflate prices to cover risks.
Brady, E., Brace‐Govan, J., Brennan, L., & Conduit, J. (2011). Market orientation and marketing in nonprofit organizations. Indications for fundraising from Victoria. International Journal of Nonprofit and Voluntary Sector Marketing, 16(1), 84-98.
Tampa General Hospital. (n.d.). About Tampa General Hospital. Retrieved on 20 April 2017 from https://www.tgh.org/
Wang, C., & San Miguel, J. G. (2013). Are Cost-Plus Defense Contracts (Justifiably) Out of Favor? Journal of Governmental & Nonprofit Accounting, 2(1), 1-15.
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