Banner Health Essay

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Banner Health in a non-profit based in Phoenix, Arizona with Peter Fine as the president. They serve as a nonprofit, existing to offer health care services to the community, instead of placing emphasis on generating profits. That means that each dollar they earn is reinvested into a variety of things like new hospital beds, expansion of patient care services, physician services, new technologies, and paying employee's salaries (Banner Health - www.BannerHealth.com, 2015). Hospitals like these are meant to aid people in terms of getting adequate medical treatment and care. However, NFP hospitals like Banner Health also have to realize the current state of the economy and may have to make some changes in order to continue existing within the current healthcare climate.

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Investor-owned hospitals are more business-oriented than NFP hospitals like Banner Health. Different from earlier investigations based on comparatively small samples, the findings from a big, multi-year sample show NFP and IO hospitals arrange their capital inversely and marginal benefits as well as costs of debt remain differentially influenced by risk, profitability, growth, and size. IO hospitals use substantially and significantly more debt versus their NFP peers. "The capital structure of NFP hospitals is not as sensitive to risk but more sensitive to profitability. Growth and size also have distinctly different relationships to the use of debt. As NFP hospitals grow, and asset bases get larger, the institutions use more debt" (Turner, Broom, Elliott & Lee, 2015, p. 1). This means the IO hospitals use less debt if they experience growth while NFP experiences debt when they grow and increase profits.

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Banner Health has increased in size and amount of services offered. This means they could be experiencing higher levels of debt because of the expansion and may become unequipped to handle the growth. If they are to compete with the IO hospitals that thrive on growth and profit, they need to increase their prices, while still remain lower than their competitors and advertise more.

3 In a 2014 article by Pinho, Rodrigues & Dibb (2014), they suggest that organizational culture has an impact on organizational performance. "Results have shown that organizational culture impacts on organizational performance. Concerning the market orientation consequences, the study results suggest that higher levels of market orientation result in both high levels of organizational commitment and organizational performance" (Pinho, Rodrigues & Dibb, 2014, p. 374). Results also propose that organizational commitment does not influence performance in a very substantial way. The conclusions add weight to the new emphasis on business-oriented methods as a control for improving performance within non-profit organizations. Non-for-profit hospitals like Banner health must take into consideration the benefits of approaching organizational culture and performance within a business setting in order to continue existing.

Therefore, promotion could be one of the most useful tools when it comes to Banner Health. Many non-profits actively advertise. This is because they need continual donations to….....

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