Introducing
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1. OBJECTIVES
2. INTRODUCTION
3. WHAT IS THE BUSINESS
4.FORMS OF BUSINESS OWNERSHIP
5. BUSINESS FUNCTIONS
6.THE IMPACT OF THE ECONOMY
7.THE ROLE OF GOVERNMENT
8. INTEGRATING BUSINESS AND ITS ENVIRONMENT
1. Define the term of Business.
2. Discuss forms of Business Ownership and characteristics.
3. Illustrate the Business functions.
4. Identify the impact of the Economy.
5. Discuss the role of Government.
6. Describe the integrating Business and its Environment.
INTRODUCTION
Business make decisions about products they offer,the customers they try to attract, and how they organize and manage their employees and operations.
Figure 2.1
The activity of providing goods and service to customers for Profit.
Profit = Revenue - Expenses
All business must make a profit.
Making a profit is identified as the primary reason for the business to exist.
Dr. Soliman Fakeeh Hospital - Jeddah
The primary reason for the business to exist is some reason other than profit ( taking social issue)
Bab Al Khair
First non-profit hospital -Makkah
Advantages:
Easy to create business.
Owner has complete authority.
Reaps all the profit and rewards.
Sole proprietorship
Owned by one person.
Disadvantages:
ALSAGGAF EYE CENTER
Owner must work long hours.
Take all the risk.
Owner death, Business death.
Advantages
Start up with low cost.
Shared decision making.
Putting together their expertise.
Sharing risk.
Partnership
Two or more people work together.
Healthcare and Medical Services Group
Disadvantages
Conflict can be easily.
Shared profit.
limited life.
Advantages
Corporation
Owner can be easily transform.
The risk is shared.
Unlimited life of business.
Have many owners.
Dallah Health Services Company
Disadvantages
Difficult to start.
Loss limited to initial investment.
Corporation pays tax and shareholder pays tax.
The North American Industry Classification System (NAICS)
Under code 62( health and social assistance) The businesses are divided into four categories:
1. Ambulatory health care services.
2. Hospitals.
3. Nursing and residential care facilities.
4. Social assistance.
Businesses in united states operate in the market economy.
Competition is the central feature for this market.
Some business do not operate in a true market economy.
Market where there are only a few seller is called (oligopoly).
or one seller called (monopoly).
Demand the amount of a good a buyer is willing to purchase at a given price.
Supply the higher the price goes, the more they are willing to produce for the market.
Figure 2.3
Equilibrium price
The health of the overall economy can be analyzed by studying data known as economic indicators:
Interest : the price paid when an individual or business borrows money.
Inflation : is an increase in the general price level, or average of price at a given time.
Unemployment : is the lack of jobs for those who are willing and able to work.
Business cycle:
Regular cycles of growth and decline.
The are four possible scenarios of Business cycle:
1. Prosperity phase
times are good-GDP increasing
interest rate , Inflation rate and unemployment rate are all
2. Recession phase
the economy slow down.
inflation and interest rate start to
3. Depression phase
If a recession persists,economy activity comes to a near standstill.
4. Recovery phase
things begin to improve.Business hire back employees, and business and individuals are able to buy the items.
Government actually play three roles :
1. Provider of health care services.
2. A payer for services provided by others.
3. A regulator of health care provider.
*Government regulates health care by using the political process to make laws.
*Industries create their own regulatory groups so government will decide no additional regulation is needed.
(The Joint Commission evaluates health care organizations to improve the quality and safety of health care services).
The government uses laws to regulate health care have had two objectives:
1. To ensure fair competition in marketplace.
2. To protect the public.
Antitrust laws are an example of how the government regulates competition.
Many managers use a technique called SWOT analysis to determine where the business is in relation to its environment.
What drove the health system reforms in the Kingdom of Saudi Arabia? An analysis.
The main idea of the article is to present the key directions taken by the Saudi health care system following the Saudi Vision 2030. The government is now ardently pursuing private sector development and has initiated privatization and marketization as a core strategy of reforms in its health system.
For the past 20 years, the KSA government has been promoting reforms in the private sector. The state is committed to providing the best health care to meet the changing needs of society, improve quality and minimize costs. The National Transformation Plan focused on reducing dependence on the oil economy through diversification and foreign investment. To improve the health sector, it encouraged private sector participation, privatized some public facilities, and provided health care through health insurance. NTP aims to strengthen the role of the private sector in the economy by focusing on privatization and public-private partnerships through improving the business environment, developing local capital markets, encouraging foreign direct investment. These reforms have always been on upgrading the quality and addressing the economic and financial issues. The impact of health system reforms remains inconclusive as costs, inequality, equity, and outcomes. Not to mention the effect of covid pandemic on the economy in the past two years which lead to increase interest rate, inflation rate and unemployment rate.
Austin/Wetle, The United States Health Care System, 3/e ISBN-10:
0134297792 • ISBN-13: 9780134297798 • 2017Pearson • Paper, 288 pp
Published 09 Jun 2016
Rahman, R., & Alsharqi, O. Z. (2018a). What drove the health system reforms in the Kingdom of Saudi Arabia? An analysis. The International Journal of Health Planning and Management, 34(1), 100–110. https://doi.org/10.1002/hpm.2584