The first article pertained a private-public partnership for hospitals. The article discussed how European governments are partnering with the private sector to reduce the costs of operating public hospitals and delivering services ( Barlow, Roehrich & Wright, 2013) . The government engages in such partnerships to void upfront capital expenditure and harness the efficiency of the private sector, while the private sector looks towards getting a return on investment. With shortages in public capital to set up new infrastructure, the partnerships are attractive options to continue offering healthcare services to people. This article raised a factor on owner’s equity when it comes to public-private organizations that have become common in the United States, increasing opportunities for private equity funds ( Barlow, Roehrich & Wright, 2013) .
The net worth term that comes from this article is equity, which often represents the total amount invested by stockholders in a business. The equity in a business is equal to the total assets of a firm after liabilities have been removed, often found on the balance sheet of a company. In partnerships, the shareholders provide equity to act as finances for the project. Finances can also come from debt provided by banks and other financial institutions. The finance structure of partnership is a combination of equity and debt as well as contractual relationships between lenders and equity holders. The government may consider direct or indirect equity participation in the partnership to provide support and achieve a favorable debt-equity ratio ( Barlow, Roehrich & Wright, 2013) . This gives debt financiers comfort and can reduce the cost of lending.
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The Private-public partnership applies in the healthcare sector due to their increased application to improve the delivery of healthcare services and reduce costs of operations. Public-private partnerships have become popular as a way of improving the delivery of healthcare services. The net worth term applies to the healthcare sector as it helps determine how the government and private companies make a profit from the partnerships. The partnerships are widely used in the healthcare to help realize public infrastructure projects, and it is important to understand how the government and private sectors share in the equity ( Barlow, Roehrich & Wright, 2013) . The corporations take a variety of forms; such as private companies building new hospitals while the government provides revenue.
The net worth term is often applicable to partnerships in a business context. A partnership is a form of business organization where two entities join hands in operating a business and sharing profits or losses. Partnership equity is the percentage that a partner has in the assets, representing the ownership interest within the industry. A public-private partnership often involves financing from various sources in combination with equity and debt ( Barlow, Roehrich & Wright, 2013) . This includes each partner’s total contribution, together with retained earnings that are reflected in the balance sheet. Since healthcare infrastructures are a typical risky investment, governments are entering into partnerships with private organizations.
In this article, the description of equity is specific enough to help understand its application in the public-private partnerships. Instead, this article focused on explaining the partnerships and their importance in improving healthcare delivery. If I were the author of the article, I would explain more precisely how the equity fund contribution in a public-private partnership is made. For example, sponsor funding in a public-private partnership is done through equity contribution by the use of share capital. The equity contributors are the government and private companies.
The second article touched on assets and liabilities in healthcare when describing business fundamentals in the healthcare profession. The journal offered a method of recognizing revenue and expenses in healthcare organizations to help healthcare workers understand how the sector makes profits ( Hackbarth & Gamble, 2017) . This would help healthcare workers understand how to keep the organization profitable. In the article, the authors mentioned assets and liabilities in the healthcare sector and their importance to business. The journal also described sources of revenue in the healthcare industry, including fees paid by patients to private insurance companies or money provided by the government.
The financial terms that are present in this journal are assets and liabilities. Assets are the resources owned by a firm while liabilities are the resources claimed by creditors in the form of stakeholder’s equity. The article described stakeholder’s equity as divided into either earned or contributed capital. Earned capital is the accumulation of net income and loss that a health company experiences over time that is kept rather than distributed to stockholders as dividends ( Hackbarth & Gamble, 2017) . The money is often known as retained earnings, which is different from contributed capital that describes the amount invested in a business. A balance sheet is often the financial status of an organization that represent the relationship between assets, liabilities, and owner’s investment in the business. On the other hand,
Assets and liabilities apply to the healthcare industry due to its business nature of making profits. Assets are defined as critical components during the valuation of a health care business, which can be tangible or intangible. The value of intangible assets may not directly influence the financial performance of the organization compared to tangible assets, but they have the potential of building the value of the firm. For example, intangible assets come in the form of human, organizational, or informational capital. This puts an organization at a competitive edge in the market share, and can also help it offer competitive services to patients. The tangible assets in healthcare include accounts receivable, equipment, and other working capital components. On the other hand, intangible assets include things such as trade names, favorable leases, and goodwill. The assets are a significant influence on the competitiveness and efficiency of healthcare.
The assets and liabilities are mostly used when referring to for-profit sole proprietors or partnerships since they focus on making profits through competition rather than accountability and achieving missions. The organization compares the assets to liabilities to determine whether it makes enough profits to remain competitive in the market ( Hackbarth & Gamble, 2017) . Nonprofit enterprises often have different financial structures compared to the for-profit organizations based on the criteria for commercial success. Profit organizations focus on profitability while nonprofit organizations focus on accountability and fulfilling their missions.
In essence, this article was specific enough when describing the net worth terms that made it easy to understand and decipher. It contained a definition of the net worth terms and their applications in the healthcare sector, helping healthcare workers understand how revenue is generated. The information can help improve the profitability of the organization by understanding how to use the tangible and intangible assets.
References
Barlow, J., Roehrich, J., & Wright, S. (2013). Europe sees mixed results from public-private partnerships for building and managing health care facilities and services. Health Affairs , 32 (1), 146-154.
Hackbarth, G., & Gamble, K. F. (2017). When healthcare professionals understand business fundamentals. Journal of Higher Education Theory and Practice , 17 (9), 50-60.
