16 September, 2018

Childhood Cancer vs. Hope


Introduction
            Our government imposes policies and laws to rheostat the economy in terms of expenditure. The relationship between economic policy changes, the market, and availability of healthcare are, each rest on consumer demand and spending (Getzen, T. & Allen, B., H. (2007). Keeping healthcare costs down has taken center-stage. Strategic planning from law-makers must fine-tune towards trends for productivity purposes. Consequently, healthcare organizations exploit economic and financial theories as a guideline for premeditated development.  Disparities among dissimilar socioeconomic backgrounds and low-income persons, agonize the greatest for healthcare and overall quality of life. The purpose of this report is to shed light on various scenarios and impacts regarding healthcare delivery systems; primarily a non-profit organization, St. Jude Children’s Research Hospital.

Economic Theories and Principles
Economic Disparities
            Dr. McCanne says the Children’s Health Fund (CHF) guesses that 20.3 million children in the United States (28% of all children) face barriers on retrieving crucial medical services. This guesstimate covers children who are a) uninsured; b) children who do not obtain routine principal care; and c) publicly insured children who are associated to primary care but have unmet requirements for pediatric subspecialty care, like pediatric cardiology and/or pediatric endocrinology (McCanne, D. 2016). The weight of uninsured children puts a strain on St. Jude’s efforts to provide quality research and services to children.
Economic Theories
            St. Jude’s website explains how their revolutionary research can take five to 10 years or more per project to complete and can cost millions (St. Jude, 2018). Also, St. Jude Pediatric Cancer Genome Project transformed how cancer is treated globally and has been in progress since 2010, costing more than $100 million (2018). To be effective, St. Jude must have a solid promotion team for analyzing the marketplace. Supply and demand is the basis of organizations counting healthcare. Demand for childhood healthcare is needed, but the supply is threatened. St. Jude must study statistics for childhood cancer to meet community demands. The scarceness of healthcare for kids keeps St. Jude’s organization in demand. Legislation dictates how monies are spent, so businesses must fine-tune to government regulations (McCanne, 2016).
Use of Economic Principles
            Socioeconomic backgrounds, diversity, and one’s belief’s system, greatly impacts assessments on how to distribute wanted healthcare services (Getzen, T., E. & Allen, B., H. 2007). St. Jude’s according to the website claims to meet each need for all families alike (2018). The website also says St. Jude, pays for all treatment; travel for the patient and parent; housing (up to 4) in a family with possibilities for larger lodgings; a daily food budget for the cafeteria and food gift cards so families can cook meals in one of their three housing amenities. Onsite schools so patients do not fall behind in their school work. They also have numerous other services for families. Psychosocial help for caregivers and/or relatives dealing with a child’s cancer diagnosis and child life specialists. Also, concierge services to help families with ordinary tasks such as delivering groceries, and translation assistance, babysitting, and the list go on (St. Jude 2018). With boundless support, families can be less burden and focus on saving the life of their loved one.
For Profit and Nonprofit
Financial Differentiation
                        Profit and non-profit organizations differ in stature. While the non-profit organization caters to the needs of a community, the for-profit company does not. Taxes are exempt from non-profit companies and a financial report is required by law for for-profit facilities. St. Jude goal line henceforth the not-for-profit business, meets demands grounded by trends. A for-profit sole purpose is to capitalize on earnings. Community needs take a back seat regarding delivering healthcare services to for-profit establishments.
Economic Differentiation
            Nonprofit and for-profit companies differ in terms of economic policies and legislation. Both are consumer-driven but for-profit entities are not obligated to provide needed services for communities, where a nonprofit’s agenda is to service societies, respectfully (Getzen, T., E. et. al, 2007). Money is not a priority for the non-profit organization, while it guides a for-profit business.
Policy, Changes, and Disparities
Economic Policy and Disparities in Care
            Getting to the root cause of problems with families must be the initial approach when addressing disparities in medical care. NCBI reports after researching, opportunities for healthy decision-making in households, districts, institutes, and offices can have pivotal influences on well-being (NCBI, 2017). This would suggest habits, customs, and people belief system play an important role in how healthy they are or can become. Breaking down barriers can become problematic if individuals are set in their lifestyles or ways of living if you will.
Policy Changes
            Governmental legislative policies have an astounding impact on how insurance companies and healthcare organizations distribute medical care to society. McCanne states, non-financial barriers most often take the form of either geographic barriers or informational barriers. Geographic fences contain dilemmas with transportation, like a lack of a vehicle or underprivileged public transit opportunities, and federal-designated Health Professional Shortage Areas (HPSAs) where the amount of health professionals in an environmental area is unsatisfactory for residents that desire healthcare. CHF guesstimates that over 14 million children live in HSPAs (McCanne, 2016).
Disparities Planning
            Planning by implementing disparities are exercised to include those persons who would otherwise be neglected of healthcare products and/or services.     
Organizational Impact and Recommendations
Organization Introduction
                        It is a task for poorer citizens to guarantee proper healthcare for their children. Corporations have lightened the burden by providing needed medical services free of charge. This transports me to the subject, St. Jude’s Children’s Research Hospital. St. Jude Children’s Research Hospital (St. Jude’s) originally opened on February 4, 1962 (St. Jude Children’s Research Hospital, 2018). The hospital's timeline recites, “From Dream to Reality (2018).” Danny Thomas, the founder, has instituted a method to touch the lives of families and donors, setting up a podium for all to profit. The primary hospital was opened in Memphis Tennessee fulfilling the promise Danny Thomas made years prior in relation to his waning career (Arab American National Museum, 2018). Danny Thomas prayer in a Detroit church to St. Jude Thaddeus, the patron saint of hopeless causes. “Show me my way in life,” vowed Danny Thomas, “and I will build you a shrine (Arab American National Museum, 2018).” His goal was to battle childhood cancer and St. Jude Children’s Research Hospital was born. St. Jude’s is also identified to wholly function on compassionate gifts. Leveling the playing field for financially impaired parents has become the groundwork for the Organization. Obviously, a healthy child will become a healthier adult.
Nonprofit or For-Profit
                        St. Jude Children’s Research Hospital is a non-profit organization. All earnings deliver medical products, services, and research to all children free of charge. Tactical marketing preserves the corporation (St. Jude Children’s Research Hospital, 2018). Better Business Bureau (BBB) reports this association is tax-exempt under section 501(c)(3) of the Internal Revenue Code (BBB, 2017). They are also entitled to collect donations deductible as charitable gifts for federal income tax purposes (2017). In contrast, a for-profit entity must file a 990 form plus release quarterly report statuses (2017).
Financials, Market, and Demand
Demand Theory
            Deloitte & Touche LLP conducted a collective financial audit report on behalf of St. Jude (2018). According to these fiscal reports, total charitable contributions were for 2016, $21,072,936 and 2017 $21,768,125 (2018). With a $695,189 variance, one could assume additional strategic marketing planning is imperative to continue operative functions positively.

Market Behavior Impact
            St. Jude has a unique 6-year plan that focuses 75 percent of overall efforts toward advancing cure rates for pediatric cancer also 25 percent in the direction of non-malignant hematological diseases and nominated infectious diseases (St. Jude 2018). Future planning such as this must be revisited to ensure the route mimics the initial design. In addition, this plan solely depends on the demand or economy remains constant. 
Economic Legislative Changes
Legislative Changes
            Former president Bill Clinton answered the call and Congress with bipartisan support developed the Children’s Health Insurance Program (CHIP) (Strauss, V. 2017). Strauss reports 9 million children, families, and pregnant women benefited from CHIP. However, the government-sponsored program faced hardships by funds becoming exhausted (2017). This policy would favorably impact St. Jude by the governments support in funding demanding healthcare to sick children.
Policy Changes and Impact
            Another policy, the Affordable Care Act (ACA) or Obamacare inflict hardships on non-profit organizations by sticking them with financial penalties, Hilton explains (2013). St. Jude could find themselves reevaluating how monies are utilized for healthcare delivery. Robust management along with effective promoting is necessary to design a plan successfully.
Statement Impact
            Information gathered from the Better Business Bureau (BBB) regarding St. Jude’s financial report (please refer to appendix) shows total liabilities are $398,497,215 and the total assets $4,356,414,142 (BBB, 2018). This demonstrates that financially St. Jude has a solid foundational promotion team that has served the hospital well. Pitfalls along the way must be monitored to stay ahead of the current.
Potential Disparities
            Possible disparities are factored into strategic planning to reduce inequalities in the healthcare sector (Getzen, T., E., et, al. 2007). Decision-making rests on diversity and socioeconomic differences in populations.
Conclusion
            In closing, there are several trials that can impact an organization whether it be for-profit or non-profit organizations. Nonetheless, companies’ efforts must remain the focus to capitalize in the marketplace. Financial statements govern the decision-making process repeatedly. It is up to lawmaker’s and businesses alike to submit bipartisan exertions to supply healthcare to society. Advertising, fundraising, and other marketing strategies are crucial to any business, counting healthcare facilities. For-profit and non-profit corporations together strive to modernize by implementing innovative technology to its customers. Even though each may have variance agendas, both are eager to distribute quality, innovative products to the public. In healthcare, consumers are searching for upgraded trends, and it is up to the company to develop products people want. Watching spending habits, health risks and rates will guide businesses on what to develop for consumer needs/wants. Supply and demand is a two-way street and individuals are willing to pay for a product and/or service they deem worthy. Our government must impose guidelines, regulations, and laws to keep businesses in compliance by evening the playing field. Without rules, non-profit and for-profit establishments would do what is right in their own eyes. Organizational behaviors and/or actions may be viewed as unfair practices. St. Jude Children’s Research Hospital has stood the test of time and have saved countless lives. Future generations are dependent on how our economy functions currently. Spending keeps the economy flowing. Healthcare issues are ongoing, however, steadily moving forward. Coming together on one accord regarding healthcare mishaps will keep America #1. Propelling forward in technology to provide top-quality products/services is something all leaders strive to do. If productivity is recognized, more heightened energies will be discovered and exercised.









References
Arab American National Museum (2018) An enduring legacy, Danny Thomas & ALSAC/ST.
            Jude, Retrieved from http://www.arabamericanmuseum.org/st-jude
Better Business Bureau, (BBB, 2018) ALSAC St. Jude children’s research hospital, give.org
            BBB wise giving alliance, Retrieved from
            http://give.org/charity-reviews/national/alsac-st-jude-childrens-research-hospital-in-memphis-tn-2903
Getzen, T., E., & Allen, B., H. (2007) Healthcare economics, Principles and tools for the
            Health care industry, John Wiley & Sons. Inc. Hoboken, NJ.
Hilton, E. (2013) Charitable hospitals to be fined under Obamacare, Fines could be as high as
            $50.000 for non-compliance, Retrieved from
            https://www.theaquilareport.com/charitable-hospitals-to-be-fined-under-obamacare/
McCanne, D., MD. (2016) 20 million children lack sufficient access to health care,
            Physicians for a national health program (PNHP), Retrieved from
            http://pnhp.org/blog/2016/11/22/20-million-children-lack-sufficient-access-to-health-care/
Thornton, R. L. J., Glover, C. M., Cené, C. W., Glik, D. C., Henderson, J. A., & Williams, D. R. (2016). Evaluating strategies for reducing health disparities by addressing the social determinants of health. Health Affairs (Project Hope), 35(8), 1416–1423. http://doi.org/10.1377/hlthaff.2015.1357
St. Jude Children’s Research Hospital (2018) Retrieved from
            https://www.stjude.org/about-st-jude/history.html
St Jude Children’s Research Hospital (2018) Retrieved From:
            https://www.stjude.org/about-st-jude/financials.html
St. Jude children’s research hospital, Inc., American Lebanese Syrian Associated Charities, Inc.
            Retrieved from https://www.stjude.org/content/dam/en_US/shared/www/about-st-jude/financial-information/fy17-combined-audited-financial-statements.pdf
Strauss, V. (2017) 9 million kids get health insurance under CHIP. Congress just let it expire
            The Washington Post, Retrieved from https://www.washingtonpost.com/news/answer-sheet/wp/2017/10/01/9-million-kids-get-health-insurance-under-chip-congress-just-let-it-expire/?noredirect=on&utm_term=.a732b6c2bacc
The following information is based on ALSAC St. Jude Children's Research Hospital's audited financial statements - combined for the year ended June 30, 2016.




Appendix
                  St Jude’s Source of Funds
Contributions, restricted and unrestricted
$930,024,629
Bequests
$216,548,714
Net patient service revenue
$114,471,276
Research grants and contracts
$88,797,019
Other revenues
$19,885,696
Special events, net
$15,795,350
Net investment loss
($2,292,109)
Total Income
$1,383,230,575
  • Programs: 72%
  • Fundraising: 17%
  • Administrative: 11%
Total Income
$1,383,230,575
Program expenses
$842,709,795
Fundraising expenses
$202,203,569
Administrative expenses
$134,681,634
Other expenses
$0
Total expenses:
$1,179,594,998
Income more than Expenses
$203,635,577
Beginning Net Assets
$3,755,243,971
Other Changes in Net Assets
($962,621)
Ending Net Assets
$3,957,916,927
Total Liabilities
$398,497,215
Total Assets
$4,356,414,142

Note 1: ALSAC/St. Jude reported receiving in-kind contributions in the amount of $7,894,714 consisting of donated securities. Note 2: In the financial section above, "other changes in net assets" refers to a loss from disposal of property and equipment.

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