Fundamentals · chapter 3 · Healthcare Delivery Systems
Organizational Frameworks and Structure
The 13 things this section of the textbook says that you are most likely to be asked about — quoted word for word, not retold. Then 6 practice questions with the reasoning.
Key points
Healthcare models overview
Most countries use one of four basic models to structure and organize their healthcare systems (Chung, 2017). By contrast, the United States combines elements of each of these models.
Delivery system types
There are three types of healthcare delivery systems in the United States: not-for-profit, for-profit, and state/local government (Yarbrough Landry et al., 2019).
For-profit financial pressure
While for-profit systems serve their communities, they are also under pressure to earn a profit at the end of the year, which is then returned to the investors (Cheney, 2019).
Emergency care requirement
All hospitals are required to treat critically ill patients who come to their emergency departments. However, most for-profit hospitals will stabilize patients who are underinsured or without insurance and transfer them to other facilities (usually either not-for-profit or state/local government–run facilities).
Not-for-profit obligations
A not-for-profit (NFP) hospital does not have to pay federal, state, or local taxes but is required to provide charity care (free or discounted care) and serve their communities (Gee Waldrop, 2021).
NFP service offerings
Because they have a mandate to serve their communities and do not have to answer to shareholders, NFP hospitals are more likely to offer services with poor profitability, such as emergency or trauma care, burn units, or obstetrics (Gee Waldrop,2021; Horwitz Nichols, 2022).
Government safety-net facilities
These institutions do attempt to bill patients and accept insurance; however, they are also safety-net facilities and provide care for the uninsured or underinsured regardless of ability to pay (Moura, 2021).
Public and private institutions
In health care, an institution is public if it is run and largely funded by the government and is for the good of the people it serves. An institution is private if it is run and funded by a group other than the government and can be either a for-profit or a NFP institution.
Local public health roles
They also administer programs such as WIC (a food supplement program for women, infants, and children), monitor communicable diseases, and manage testing and reporting of communicable diseases.
Integrated delivery goals
Their goals include sharing information, responsibility, and resources to ensure the best care (Yarbrough Landry et al., 2019). The primary care medical home is one example of the integration of delivery systems.
Electronic health records
They share information through electronic health records that can be pulled up by any provider in the system to improve the quality of care throughout the healthcare process.
Federal IDS populations
However, it does run IDSs for several specific populations: the Veterans Health Administration (VHA), the Indian Health Service (IHS), and the U.S. military all have their own IDS structures run by the federal government, and eligible persons can receive any level of care they need within those IDS structures.
Healthcare provider categories
Healthcare providers include licensed practitioners who can legally diagnose conditions and prescribe medications, nursing care staff who care for ill or injured patients, and other support personnel. Licensed practitioners include medical doctors, doctors of osteopathic medicine, nurse practitioners, and physician assistants.
Terms to know
- healthcare delivery organization
- A healthcare delivery organization is a single facility or group of facilities that provide medical care for some portion of a population.
- stakeholder
- In this type of system, an investor is a stakeholder, or person with an interest in the success of the organization.
- safety-net hospital
- Is the organization required to function as a safety-net hospital (a facility that is required to provide care for a patient no matter their ability to pay)?
- integrated delivery system (IDS)
- An integrated delivery system (IDS) is a network of providers and agencies who collaborate with each other to provide care to an individual or a community (Yarbrough Landry et al., 2019).
- Community hospitals
- Community hospitals include all hospitals that are not federal hospitals and offer both short-term and/or specialty care that is available to the general public (Yarbrough Landry et al., 2019).
- independent practice
- An independent practice, also known as solo practice, is a medical office owned and run by a single physician who treats patients.
- multispecialty group practice
- A multispecialty group practice includes multiple different specialties within one organization (ACP, 2022).
Practice questions
Stuck on select-all-that-apply? How to take them one option at a time.
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Every question here, with the answer
A nurse is helping an underinsured patient plan follow-up care after an emergency department visit. The patient asks which type of hospital is expected to function as a safety-net facility regardless of ability to pay. Which response is most accurate?
- Independent physician practice
- Single-specialty group practice
- State and local government hospital
- For-profit hospital
Answer: State and local government hospital
State and local government hospitals are described as safety-net facilities that provide care for uninsured or underinsured patients regardless of ability to pay. For-profit hospitals rarely function as safety-net hospitals, and independent or single-specialty practices are provider practice types rather than the hospital delivery system described here.
A community health nurse is referring a family to services commonly provided by state and local health departments. Which services should the nurse include? Select all that apply.
- Returning profits to shareholders
- Monitoring communicable diseases
- WIC support for women, infants, and children
- Setting hospital profit expectations for investors
- Testing and reporting of communicable diseases
Answer: Monitoring communicable diseases, WIC support for women, infants, and children, Testing and reporting of communicable diseases
State and local health departments administer WIC, monitor communicable diseases, and manage communicable disease testing and reporting. Returning profits to shareholders and setting investor profit expectations are associated with for-profit organizations, not local public health departments.
A nursing student is comparing international healthcare models. In one model, employed people have insurance paid by both the employee and employer, prices are controlled by the government, and medical facilities are private. Which model is the student describing?
- Out-of-pocket model
- Beveridge model
- Bismarck model
- National health insurance model
Answer: Bismarck model
The Bismarck model is described as social health insurance in which employed people have insurance paid by themselves and their employer, with government-controlled prices and private facilities. The other models differ in payer structure, facility ownership, or reliance on patients paying for their own care.
A nurse manager is evaluating whether a proposed partnership among a clinic, hospital, and community agency reflects the goals of an integrated delivery system. Which goals should the nurse manager identify? Select all that apply.
- Sharing resources to support care
- Sharing information among participating providers and agencies
- Limiting care to only one level of need
- Keeping each organization separate so providers do not collaborate
- Sharing responsibility for care
Answer: Sharing resources to support care, Sharing information among participating providers and agencies, Sharing responsibility for care
Integrated delivery systems are intended to share information, responsibility, and resources to provide the best care. Keeping organizations separate or limiting care to one level conflicts with the collaborative and integrated purpose described in the section.
A hospital board is considering whether to continue services that are needed by the community but have poor profitability, such as burn care or obstetrics. Which hospital type is more likely to offer these services because it serves the community and does not answer to shareholders?
- Not-for-profit hospital
- Independent practice
- For-profit hospital
- Out-of-pocket model facility
Answer: Not-for-profit hospital
Not-for-profit hospitals are more likely to provide services with poor profitability because they have a mandate to serve the community and do not answer to shareholders. For-profit hospitals are under pressure to earn profit, while an out-of-pocket model and independent practice do not describe this hospital obligation in the section.
A patient is referred to a multispecialty group practice. Which services or specialties would be consistent with the example of this type of practice in the section? Select all that apply.
- Physical therapy
- Primary care
- General surgery
- A single physician operating a solo independent practice
- Pulmonology
Answer: Physical therapy, Primary care, General surgery, Pulmonology
A multispecialty group may include primary care, pulmonology, general surgery, and physical therapy in one location or related locations. A single physician operating a solo practice describes an independent practice, not a multispecialty group.
Where every quote comes from
Section 3.2 Organizational Frameworks and Structure of Fundamentals of Nursing by Christy Bowen, Lindsay Draper, Heather Moore, OpenStax, 2024. Read the whole section free at openstax.org.
The textbook is licensed under CC BY-NC-SA 4.0. This page quotes it word for word and adds the headings, the order and the practice questions; references to the book's figures and stray spaces left by its formatting are removed. The page is shared under the same licence. Nothing here is sold.