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Research Paper | Management | Saudi Arabia | Volume 4 Issue 6, June 2015

Price Adjustment Options for a Not-For-Profit Health Organization

AlaDeen Mahd Alloubani | Ibrahim Mubarak Abdelhafiz

Abstract: The study of health care financial management is both fascinating and rewarding. For one, it is fascinating because many of the concepts involved pose implications for both professional and personal behavior. It is also rewarding since, right or wrong, health care environments today and into the foreseeable future increasingly force managers to focus on the financial consequences of making operating decisions. The aims of this study to verify the feasibility of introducing some price adjustments into not-for-profit health organizations, by highlighting the primary benefits of applying such changes for various stakeholders, including patients, employees, the health organization itself, and even the community at large. The methods of this study are discussed the alternative pricing. These include a flat fee system, charging preset fees at different rates and the percentage of the expected revenues of services provided. The hospital of study is supposed to be a not-for-profit, self-funding organization. The hospitals capacity is 105 beds. The health care in which is provided by 31 specialists, 10 residents and 8 general physicians along with 201 licensed nurses. It is to be noted that applying this flat fees system is of relative value in terms of financial returns. An amount of (99176.5 JDs) could be of some value if effectively and efficiently used for the welfare of the patients by providing a higher quality of services at a lower cost. It was found that the use of fixed percentage charges from patients who are insured or able to pay, provide a better way to generate reasonable revenue to the not-for-profit hospital, and it is an easier and a more reproducible method that can be applied to a simple accounting system.

Keywords: Not-for-profit, financial management, flat fee system, quality of services, Healthcare

Edition: Volume 4 Issue 6, June 2015,

Pages: 2531 - 2536

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