Organization Paper BHMC 413 Fiscal Management Riley Putnam Professor Anthony Geron Abstract This paper will describe what kind of organization Richmont Terrace operates as and explain how Richmont Terrace receives funds for doing business. Organizations are broken into two parts; either profit oriented or nonprofit oriented. Profit oriented describes organizations such as individual, partnership, and corporation. Nonprofit oriented includes organizations, such as church associated, private schools, foundation associated, and any government organizations. Richmont Terrace is considered a partnership organization because there two or more people who jointly own the organization. Each investor contributes money, property, labor or skill, and …show more content…
Profit oriented describes organizations such as individual, partnership, and corporation. Nonprofit oriented includes organizations, such as church associated, private schools, foundation associated, and any government organizations. “Profit-oriented entities, also known as proprietary organizations, are responsible for paying income taxes” (Baker & Baker, 2014). Richmont Terrace is considered a partnership organization because according to the IRS, “A partnership is the relationship existing between two or more people who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.” When an organization is a partnership, it does not pay any income tax at the partnership level. Partnerships must file a 1065 Form, which is a U.S. Return of Partnership Income, to report the organization income and expenses. Partners of a partnership organization are not employees of the partnership and so taxes are not withheld from any …show more content…
Each level of care and floor plan come with a different price. The Director of Healthcare (DOH) has to perform an assessment to see if the potential resident can move into Richmont Terrace. After the assessment the DOH calculates the total number of points that the resident requires and then the DOH gives that information over to the Office Manager. Once the Office Manager receives the assessment information, he or she will charge it to the residents every month. There is a set dollar amount for each floor plan in which that number does not change. However, the level of charge increases as the resident requires more care. That being said, Richmont obtains the funds needed for operations and to remain in business with monthly rent, specialized care plan, and different level of cares that Richmont Terrace offers. Residents can either pay privately or use some type of long-term care insurance. Richmont Terrace does not accept anyone that is on Medicaid. According to About Medicaid (2016), “Medicaid is a health care program that assists low-income families of individuals in paying for long-term medical and custodial care cost.” Each resident must pay privately or have long-term care insurance for the first three years, and then after that three years is up the resident can decided if he or she wants to get placed on the waiting list. Richmont only offers a minimum number of Medicaid