Question 1
There are several provisions for healthcare to be considered as charity. In the case of UPMC, the organization does not demonstrate the attributes of a public charity. Instead, the organization exhibit characteristics that depicts its more as a profit oriented organization than a public charity. The corporation has failed to meet the criteria for a public charity by placing profits before the needs of the community, their patients, and their employees. For an organization to be considered a public charity, it is should be a non-profit organization out to help the public (Kearns, 2013).
Instead of attending to the plight of their patients, UPMC is out to seek profit. Their affinity for profit is demonstrated by their decision to relocate towards the source of profit. The corporation closed Braddock Hospital, which is located in a community in dire need of further access to healthcare. At the same time, it opened a new hospital next to its competitor in an affluent community (Rubin, Singh & Young, 2015).This move indicates that the corporation is out to seek profit and not provide healthcare to those in need as a public charity should do. Contrary to the definitions and provisions of a public charity, UPMC is benefiting from the public needs while contravening the labor rights of its workers. This corporation is not a public charity instead it is a profit oriented organization which seeks to evade tax under the charity organization tax except law (Dirlam, 2015).
Question 2
The geographic and product markets for large healthcare organizations are defined under the Hospital Antitrust Law (Gaynor & Vogt, 2000). The Hospital Antitrust Law ensures that the completion for geographic and product markets among large healthcare organizations produce more social benefit. These large healthcare organizations like Mayo Clinic have international geographic markets as well as product market. They serve more numerous patients across the globe and have a myriad of medical products.
Question 3
The demand for quality healthcare has lead to the rise in the number of patients crossing borders in search of better health care than is available in their local area. The cross-border movements of patients in need of better healthcare shift the perception on markets for healthcare. Markets for healthcare is not limited to geographical location and accessibility but is highly determined by the quality of healthcare (Connell, 2013).
References
Rubin, D. B., Singh, S. R., & Young, G. J. (2015). Tax-exempt hospitals and community benefit: new directions in policy and practice. Annual review of public health, 36, 545-557.
Dirlam, B. (2015). Property Tax Exemptions for Institutions of Purely Public Charity after Mesivtah Eitz Chaim of Bobov, Inc. Duq. Bus. LJ, 17, 175.
Kearns, K. P. (2013). Ethical Challenges in Nonprofit Organizations. Ethics in Public Management, 265.
Gaynor, M., & Vogt, W. B. (2000). Antitrust and competition in health care markets. Handbook of health economics, 1, 1405-1487.
Connell, J. (2013). Contemporary medical tourism: Conceptualisation, culture and commodification. Tourism Management, 34, 1-13.
