You are the healthcare administrator for a large health services organization that is part of a large healthcare delivery network. The board has just completed an urgent meeting and has called you in. The board has decided to revisit its current legal structure and would like to determine if the current structure is sufficient to adhere to healthcare policy and law. One of the important things that the board has asked you to consider is the importance of a health services organization’s legal structure in impacting the governance of policies and laws for effective healthcare delivery. The board has asked that you perform and submit a SWOT analysis that identifies the strengths, weaknesses, opportunities, and threats of not only the current legal structure but also that of another legal structure that you would recommend to adhere to the board’s request.
For this Assignment, review the resources for this week and reflect on the impact of a health services organization’s legal structure on adherence to healthcare policy and law mandates. Then, consider the strengths and weaknesses of your health services organization’s legal structure and reflect on what aspects of the current legal structure should be changed or what other legal structure might most provide a benefit for the goals of your health services organization.
The Assignment: (1–2 pages)
- Perform a SWOT analysis that identifies which legal structure is most appropriate for your health services organization and explain why.
Expert Solution Preview
Introduction:
Health services organizations have a legal structure that dictates the manner in which they operate as well as how they adhere to healthcare policies and laws. As a healthcare administrator, it is necessary to consider the importance of a health services organization’s legal structure in impacting the governance of policies and laws for effective healthcare delivery. This paper will perform a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats of the current legal structure and that of another legal structure that would be recommended.
Answer:
After performing a SWOT analysis, it has been identified that the current legal structure has some strengths such as it is easy to form, it limits financial responsibility of the organization and its members, and it has tax benefits. However, the current legal structure also has weaknesses such as limited liability protection for healthcare providers, legal disputes that result in loss of control over organizational decisions, and legal disputes that affect relationships with stakeholders such as employees and patients.
It is recommended that a Limited Liability Company (LLC) structure would be more appropriate for the health services organization. This is because LLCs offer limited liability protection for healthcare providers, have flexibility in tax status, and allow members to share profits and losses according to their contributions. LLCs would also be advantageous since they are simple to form, and they allow for a diverse pool of investors.
In conclusion, the legal structure of a health services organization is critical in adhering to healthcare policies and law mandates. Perform a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats of the current legal structure and another legal structure that would be recommended is necessary to ensure that the organization can meet its goals successfully.
