Health Services: Definition, Types & Providers
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Alexandra Unfried
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Expert Contributor
Matthew Bergstresser
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Health services refer to the patient care provided by medical professionals, health care personnel, and health
care organizations. Explore the types of health services and find out different types of healthcare services
providers.
So Many Options
Gary is a twenty-year-old man who is interested in beginning a career in the medical field. He is
meeting with a guidance counselor at the community college where he is taking prerequisite
courses. Gary is asking the counselor what his options are if he wants to pursue some kind of
direct patient care position that doesn’t require high costs and many years of schooling. The
counselor begins to explain to Gary the different types of health services.
What Are Health Services?
Health services consist of medical professionals, organizations, and ancillary health care workers
who provide medical care to those in need. Health services serve patients, families, communities,
and populations. They cover emergency, preventative, rehabilitative, long-term, hospital,
diagnostic, primary, palliative, and home care. These services are centered around making health
care accessible, high quality, and patient-centered. Many different types of care and providers are
necessary in order to offer successful health services.
Gary didn’t realize how many health services options have been around him. He usually uses his
primary care physician, who is a medical doctor, for his medical needs. He’s a young and healthy
man, so he hasn’t had to deal with other, more involved health services. However, he does have a
grandmother in a long-term care facility that he visits every couple of weeks. The guidance
counselor continues explaining the different types of health services that are available.
Types of Services
Health services cover many different types of medical issues. Many people think of primary care,
outpatient care, and emergency care when they need an illness managed or are generally not
feeling well. However, there are more health services that are dedicated to certain illnesses or
issues. These health services include:
Mental health care
Dental care
Laboratory and diagnostic care
Substance abuse treatment
Preventative care
Physical and occupational therapy
Nutritional support
Pharmaceutical care
Transportation
Prenatal care
Health services offer a range of options.
Not everyone will need each health service, while others will need several in order to have their
health care needs met. Gary begins thinking about what services he has used in the past. He uses
his primary care physician, has been to an outpatient urgent care walk-in center, the emergency
room, and the dentist. He understands why the other health care services are also important.
Now Gary is really interested to see what he can do in the health services field. He asks his
counselor what type of training college can offer him.
Types of Providers
There are many different types of health services providers, such as primary care providers,
nurses, specialists, and pharmacists.
Primary care providers include:
Generalists, such as medical doctors (MD) and doctors of osteopathic medicine (DO), who focus on
family practice, internal medicine, or pediatrics
Obstetricians/gynecologists (OB/GYN), who focus on pregnancy, reproductive health, and prenatal
care
Physician assistants (PA), who work in a partnership with an MD or DO
Nurse practitioners (NP), who work as primary care providers and can prescribe medication. They
focus on reproductive health, family medicine (FNP), adult care (ANP), pediatrics (PNP), or geriatrics (GNP).
Other nurses include:
Licensed practical nurses (LPN), who are licensed by the state to provide care to patients
Registered nurses (RN) are graduates from a nursing program and licensed by the state after passing a
state board exam. They have more privileges to provide care to patients than LPNs.
Advanced practice nurses (APN), such as nurse practitioners (NP), certified registered nurse
anesthetists (CRNA), certified nurse midwives (CNM), and clinical nurse specialists (CNS), have had
additional training in specialized nursing and medicine-related fields. A CRNA is able to administer
anesthesia during surgeries or tests. A CNM can practice in reproductive health for prenatal care, labor and
delivery, and postnatal care. A CNS has had training in a specific area such as oncology, community health,
or psychiatry.
Lastly, we have a variety of specialists, or doctors specializing in a specific branch of medicine, that
include:
Anesthesiologists (anesthesia)
Dermatologists (skin disorders)
Urologists (urinary tract disorders)
Psychiatrists (mental health problems)
Oncologists (cancer)
Cardiologists (cardiac/heart problems)
Nephrologists (kidney problems)
Cardiologists focus on care of the heart.
The guidance counselor explains to Gary that he hasn’t reviewed all of the health services options
available, but has provided him with a great starting point. At this time, Gary is interested in
becoming a registered nurse because it will allow him to obtain his degree from the community
college and provide him with opportunities to advance his career when he’s ready. He’s been seen
by a nurse practitioner before and thinks that it may be an option later on after he has discovered
what nursing is all about.
Lesson Summary
Let’s review. Health services supply many options for health care consumers through emergency,
preventative, rehabilitative, long-term, hospital, diagnostic, primary, palliative, and home care. The
goal of health services is to make health care accessible, high quality, and patient-centered. Basic
health services are known as primary care, outpatient care, and emergency care. Other types of
health services include mental health care, dental care, laboratory and diagnostic care, substance
abuse treatment, preventative care, physical and occupational health, nutritional support,
pharmaceutical care, transportation, and prenatal care.
There are many different types of health services providers ranging from medical doctors,
obstetricians/gynecologists, and physician assistants, to nurse practitioners, licensed
practical nurses, registered nurses, and advanced practice nurses, to pharmacists, and
specialists. Examples of specialized health services consist of anesthesia, dermatology, urology,
psychiatry, oncology, cardiology, and nephrology.
Medical Disclaimer: The information on this site is for your information only and is not a substitute for
professional medical advice.
Additional Activities
Director of Health Care Services Role Play
In this lesson, we learned about all of the different medical needs of a population of people
and the providers of medical care in an organized health care system. In this lesson extension,
you are going to role play as a a director of health care services. Let’s look at several medicalbased scenarios.
Scenarios
1. A child has a fever and has red, itchy bumps on the skin and lacks an appetite.
2. A child has been playing in the grass and is sneezing.
3. A 75 year old male slipped in the kitchen and hit his head on the edge of the counter. He has a gash in
his head and is bleeding a lot.
4. A 20 year old female has stopped eating and has been stealing things to get money to purchase illegal
drugs.
5. A 40 year old male is 50 pounds overweight and wishes to lose weight.
6. A pregnant woman is about 6 weeks away from the baby’s due date. She is experiencing contractions
and pain in her legs.
Instructions
Pretend you work for a medical advice phone line. On the first hour of your shift, you receive a
call for each of the scenarios above. Direct them to the type of medical care they need and
what medical professional they would need to provide treatment. For example, if a child has a
earache with a fever you would suggest they visit a medical care facility and see a pediatric MD
or DO. Refer back to the lesson for the lists of types of services and types of providers that will
fit the needs of the patients.
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Organizational Structure & Ownership of a Business
Starting a business requires serious thought about the organizational structure of the business. Learn about the
four main types of business structures along with the tax liabilities, benefits, and risks.
Organization and Ownership
When Benny wanted to open a beach bar, he had plenty to consider. First, should he open a
business on his own? Perhaps including his friend, Salty, would be a better idea. Maybe Benny and
Salty should take on several investors and open a beach resort?
There are four main ways to structure a business: sole proprietorship, partnership, limited liability
corporation, or corporation. Before Benny can make decisions about the menu or drinks for his
business, he needs to take a good look at what he wants out it. With each form of ownership, there
are benefits and disadvantages.
Sole Proprietorship
If Benny starts the beach bar on his own, he would be a sole proprietor. This way, Benny keeps all
of the profits, calls all the shots, and manages everything his way. There would be no boss
breathing down Benny’s neck, just Benny and his staff mixing up frozen daiquiris and serving up
tasty beach burgers. With sole proprietorship, the owner has complete control over all decisions.
Additionally, business taxes are part of the owner’s individual tax liability, so there’s no special
preparation needed.
For a small beach bar, this might make sense. However, the risks are still pretty high. As a sole
proprietor, Benny would have unlimited liability, meaning he would be responsible for all debt
and liabilities, including anything that employees might do. For example, if one of Benny’s
bartenders neglected to remove some orange seeds and a guest choked on them, Benny would be
personally liable for any issues arising from the situation. He could lose his business and even his
personal property, like his home, car, and financial assets.
There is also the issue of raising enough capital to start the company. A beach bar might sound like
a simple operation, but being on the beach comes at a cost. Benny would have to raise the money
to buy or rent a building, as well as secure any needed licenses and permits, without the help of
partners or investors. He could take out loans or borrow from friends and family, but ultimately he
alone would have to repay the debt. Though rewarding, this type of business can be overwhelming.
Partnership
Benny decides to invite Salty to join him in the beach bar venture. Let’s consider how having a
partner changes things. If Benny and Salty go into business together, they will form a partnership,
which is simply a business that has two or more owners. When entering a partnership, partners
should note that they will share in the debts, liabilities, and risks. Also, their taxes will be filed
individually, like a sole proprietorship with the business passing profits and losses to the owners,
who will claim the profits and losses on their personal tax returns.
As partners, Benny and Salty will have to work on a partnership agreement. There are numerous
ways to create this type of contract, but it should contain clauses for each partner’s percentage of
ownership, the allocation of profits and losses, decision making authority, and dispute resolution
plans. They also need to have a plan for the possible death of a partner.
Corporation
Benny and Salty decide that they have loftier plans, so they begin to consider a corporation. Unlike
a sole proprietorship or partnership, a corporation is an entity that is owned by shareholders.
Shareholders own at least one share in the company. In return for buying stock shares, they
receive dividends or a piece of the profits based on their contribution. In simple terms, it is like
having many partners that have no legal obligation to the business and don’t share any liability.
Their contribution is money that helps maintain the corporation.
Starting a corporation is a bit more complicated than the sole proprietorship or partnership. It
begins with registering a legal business name and registering as a corporation. The owners must
also apply for and obtain licenses and business permits. There are some significant differences
between a corporation and other business structures. First, the corporation itself pays taxes on its
profits, not the individual owners or partners. Also, corporations are taxed twice: once when they
earn profits and again when they pay dividends to shareholders. And even though shareholders
chip in for a piece of the company, they are immune to any liability for debt or employee actions.
Limited Liability Corporation
Benny and Salty decide they aren’t ready for a corporation, but they want the benefits of one. They
can achieve this by creating a limited liability corporation (LLC). This type of business has all the
benefits of a sole proprietorship or partnership without the liability. An LLC passes debt and risk to
the corporation rather than the individual owner or partners, but maintains the flexibility of a
partnership or sole proprietorship. Creditors cannot access personal assets and the individual
owner or partners cannot be sued personally.
Benny has a lot of thinking to do. Opening a beach bar sounded like fun at first. Now that he knows
about various business structures, it seems a bit more complicated.
Lesson Summary
There are four ways to structure a business.
1. A sole proprietorship, owned by one person carrying unlimited liability and tax burden, but fairly easy to
start and allowing control over business operations.
2. A partnership, owned by two or more people carrying unlimited liability and splitting individual tax
burden, but also relatively easy to start and allowing control over business operations.
3. A corporation, owned by shareholders but carrying its own tax burden and liability with little risk to
owners, but more involved to start.
4. A limited liability corporation, offering the benefits of a sole proprietorship or partnership without the
liability implied by a corporation.
The best business form is the one that works for the specific business. It’s always best to speak to
an expert before starting a business.
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Financial Management | Definition, Goals & Effects
Learn the financial management definition and understand why it’s important. Explore the goals of financial
management and see profit maximization effects.
Managing Money
Cash is king.
This phrase is popular in business circles because it’s true. A company that is cash-poor is in
serious trouble if it wants to remain in business. And some businesses have plenty of capital, or
cash, but don’t know how to effectively and efficiently use it to their advantage. All businesses,
whether cash-rich or cash-poor, must accumulate and dispense capital to remain in business. If
they fail to make wise decisions concerning the capital that they spend, it could have serious
implications for their future.
Financial management refers to how a company manages its capital (money) in order to fulfill the
goals of the company. Senior executives in a company are responsible for this function and are
held responsible by shareholders and other investors as they manage the company’s capital.
The scope of financial management can be summarized through three points. Each one plays an
important part for senior executives as they manage the financial health of their company. These
include:
1. Estimation of capital requirements (how much money the company needs in the long run)
2. Determination of capital structure (how the company’s going to get the money it needs)
3. Investment strategies that the company can use to make money through investments
Goals of Financial Management
The main goals of the business are always the senior executive’s primary target for financial
management. Although the business may have concrete goals that are part of a business plan,
there are also other goals, sometimes unspoken, that senior executives may focus on as they
manage the company’s capital. One of these unspoken goals is profit maximization.
Profit maximization is the proverbial golden goose egg to shareholders and other investors. It
means that the company is running operations and managing capital to ensure that the maximum
amount of profit is made by the company. Senior executives feel pressure to ensure that
shareholder value is constantly maximized and the victim in the end is the customer. Customers
are shortchanged by companies as they cut corners regarding quality of products or services. This
might save the company money now but will rear its ugly head down the road. In addition,
employee health and safety may be compromised to save money. Other times, employees lose
their jobs in the effort to reduce capital costs, which ultimately is all about maximizing profit. This
chart illustrates a few of these concepts:
Operational Change
Effect to
Shareholders
Effect to
Employees
Effect to
Customers
Use cheaper parts during manufacturing
Helps
Hurts
Both
Increase manufacturing speed
Helps
Hurts
Both
Increase sale price of goods
Helps
Helps
Hurts
Sell factory to another company who will close
Helps
it down
Hurts
Both
Move jobs to foreign country
Hurts
Both
Helps
As you can see from the chart, the effects of profit maximization can help or hurt different groups
of people. Sometimes it can both help and hurt these same groups. For example, if a company
increases manufacturing speed, it will help the shareholder because the increased speed will
produce more products that the company can sell, increasing sales and thus, profit. But, it will hurt
employees because the increase in speed will negatively affect their health and may compromise
safety, and it can both help or hurt customers. It will help them by making more of the products
available for purchase; it will hurt them because injuries at the factory, reducing quality in order to
increase speed, or regulatory and litigious results can slow down production and decrease the
availability of products for purchase.
Effects of Profit Maximization
Let’s take a look at how profit maximization can affect different groups of people as a company
seeks the goal of increased capital.
As an example, ABC Inc. is a publicly-traded company that sells hunting, fishing, and camping
supplies. It has many retail stores throughout the country and sell products online at its website.
The corporate headquarters is in a small town in state A. It employs over 6,000 people between
corporate, retail locations, and warehouse locations. It also employs people at its call centers.
XYZ Inc., on the other hand, is a hedge fund that is controlled by an activist CEO. It just bought 11%
of ABC’s stock, becoming the majority stock holder of ABC Inc. In XYZ’s regulatory filings with the
Securities & Exchange Commission (SEC), an independent agency of the US government whose
mission is to protect investors by enforcing federal securities laws, facilitate capital formation, and
maintain orderly and efficient markets, it reports a plan on moving the corporate headquarters
location to a major metropolis, selling assets, and downsizing in order to increase share price.
Who will this benefit, and who will it hurt? Here are possible benefits or losses for the different
groups involved:
XYZ Inc.
The share price increased 20% the first day after the announcement to the media of the stock purchase
Increased share value due to purchase of stock
Moving headquarters to a major metropolis allows for easier access to high quality employees, cheaper
supplies and products, and easier access to capital
Selling productive assets will raise significant capital through the sale and reduce expenses associated
with the asset
Downsizing will eliminate useless employment positions in ABC Inc. and reduce other employee-related
expenses
Employees of ABC Inc.
Possibility of reduced pay and benefits
Possibility of layoffs
Possibility of employees who weren’t laid off having to move to keep their jobs
Customers of ABC Inc.
Increased perceived value of ABC Inc. after the stock purchase by XYZ Inc.
Cheaper products
Better accessibility to products
Lesson Summary
Financial management is the way that companies manage their capital (money) as they fulfill the
goals of the company. Senior executives use a variety of methods to help them manage capital
effectively, including estimation of capital requirements, determination of capital structure,
and investment strategies. One goal that companies focus on much of the time is profit
maximization. This can benefit multiple groups of people related to the company, but it can also
hurt other groups. For example, employee safety, product quality, or job security may suffer.
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Health 305 – Assignment 3: Healthcare Finance Case Study
If you have a Study.com College Saver membership and are seeking college credit for this course, you must
submit an assignment and pass the proctored final exam. You must submit your assignment before registering
for the final. Below you will find prompts and instructions for submitting your assignment.
About this Assignment
For this assignment, you will analyze a fictional hospital’s transition from traditional CMS payments
to Medicare Part C and value-based care reimbursements. You will conduct extensive research on
real-life examples and detailed case studies of healthcare institutions that have successfully
navigated a shift similar to City Center Community Hospital’s transition. In a three-part report
totaling a minimum of 1,000 words, focus on identifying and analyzing key strategies, challenges,
and outcomes associated with such transitions, and ensure your analysis includes both theoretical
insights and practical examples from existing healthcare institutions.
Prompt
Introduction to City Center Community Hospital
City Center Community Hospital, a cornerstone of healthcare in its community, is a 400-bed facility
supported by a network of outpatient clinics. Historically, the hospital has been a beacon of
traditional healthcare delivery, but recent shifts in the healthcare landscape have prompted a
significant transformation.
Hospital’s Financial Background
Previously, a substantial portion of the hospital’s revenue was derived from CMS (Centers for
Medicare & Medicaid Services) payments under Medicare Parts A and B. Recently however, there
has been an increasing focus on Medicare Part C (Medicare Advantage) and value-based care
reimbursements from managed care organizations. This shift reflects a broader trend in healthcare
financing, moving away from service volume to service value. The hospital faced challenges in
adapting to the new reimbursement models. The shift required a profound understanding of the
nuances of Medicare Part C and the intricacies of value-based care contracts. To accommodate
these changes, City Center Community Hospital initiated a comprehensive internal restructuring.
This included extensive staff training focused on the principles of value-based care, investment in
new health IT systems to track and report patient outcomes, and a revamp of the billing and coding
processes to align with the new payment structures.
Action Steps
Write a report that provides a narrative of City Center Community Hospital’s journey through its
financial and operational transition by examining the following areas:
Financial Impact – Analyze how the transition would affect traditional CMS payments to Medicare Part
C and value-based care reimbursements affected the hospital’s revenue stream and cost management.
Operational Adjustments – Investigate the administrative and operational shifts required to align with
the new funding model, including changes in patient care protocols to meet value-based criteria. Detail the
specific strategies and steps that would be taken by the hospital during the transition.
Patient Care and Outcomes – Explore how this transition will impact patient care practices, especially
in terms of quality and efficiency of care, as well as patient satisfaction.
Related Lessons
The following lessons from the course may be helpful for this assignment.
Organizational Structure & Ownership of a Business
Health Services: Definition, Types & Providers
Financial Management: Definition, Goals & Effects
Sources & Formatting
Suggested sources for comprehensive research include the following:
CMS.gov – explains the policy framework and guidelines around Medicare Part C and value-based care
reimbursements.
HealthIT.gov – provides insights on how technology facilitates the transition to value-based care.
Health-related journals and publications – detailed case studies and academic perspectives on similar
transitions in the healthcare sector, examples include ‘Health Affairs’ and ‘The Journal of Healthcare
Management’.
Please write your paper in the APA format. As part of your research, you may refer to the course
material for supporting evidence, but you must also use at least three credible, outside sources
and cite them using APA format as well. If you’re unsure about how to use APA format for your
paper and sources, please see the following lessons:
What is APA Format? Definition & Style
APA Citation: Format, Usage & Examples
Grading Rubric
This assignment will be based on the following rubric:
Category
Financial
Impact
Analysis (x2)
Operational
Adjustments
Evaluation (x2)
Assessing
Patient Care
and Outcomes
(x2)
Quality and
Integration of
Academic
Research (x2)
Adherence to
APA
Formatting and
Scholarly
Writing Quality
(x2)
Total Points
Needs
Unacceptable (0Improvement (21)
3)
Total
Possible
Points
Good (4)
Excellent (5)
Analysis shows
basic
understanding
but is superficial
or somewhat
inaccurate.
Analysis is
reasonably accurate
and detailed
regarding how the
shift affects financial
models, revenue
streams, and cost
management.
Analysis is highly
accurate and
detailed as it
assesses how this
10
shift affects financial
models, revenue
streams, and cost
management.
Evaluation covers
basic operational
adjustments but
lacks depth and
clarity.
Evaluation is clear
and covers most
aspects in
operational
processes, staff
training, and health
IT systems.
Evaluation is
exceptionally clear
and thorough as it
examines changes
in operational
processes, staff
training, and health
IT systems.
Assessment is
superficial or
inaccurate.
Provides a basic
assessment with
some insight, but
lacks detail.
Assessment is
insightful and
detailed as it
explores the impact
on patient care
quality, satisfaction,
and overall health
outcomes.
Assessment is highly
insightful and
detailed as it
explores the impact
10
on patient care
quality, satisfaction,
and overall health
outcomes.
Fails to integrate
or incorrectly
uses academic
sources.
Limited
integration of
academic
research. Less
than three
relevant sources
used.
Good integration of
academic research
and three credible
sources used.
Excellent integration
of high-quality
academic research. 10
Uses at least three
credible sources.
Numerous APA
formatting errors
and poor writing
quality. Lacks
scholarly tone.
Some APA
formatting errors.
Writing is
somewhat
scholarly but
could be
improved.
Minor APA
formatting errors.
Writing is mostly
scholarly and wellstructured.
Flawless APA
formatting. Writing
is scholarly, clear,
and well-structured.
Analysis lacks
depth and
contains
significant
inaccuracies.
Evaluation lacks
clarity and misses
key operational
aspects.
10
10
50
Before You Submit
When you complete your assignment, we suggest taking some time to check for any errors or to
add any finishing touches. We also suggest that you use online plagiarism checkers such as
PlagScan or DupliChecker to make sure that your assignment is not too similar to any existing
materials. Plagiarized submissions will NOT be graded.
How to Submit Your Assignment
When you are ready to submit your assignment, please fill out the submission form and attach
your assignment in Microsoft Word, PDF, or Text document. You should receive your assignment
grade within one week.
If you are not satisfied with the score you receive on your assignment, you may revise or rewrite it
and resubmit for grading using the same submission form above. Keep in mind that the grade you
receive on your assignment is only a portion of your overall grade for the course. Please see the
course syllabus for a more detailed breakdown of the grading policy.
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