Complete the Problem on page 445 in the text titled “Choosing a Corporate Form” in a one page paper....

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Complete the Problem on page 445 in the text titled “Choosing a Corporate Form” in a one page paper. Submit your solution to your instructor. See page 369 for a general description of Marcus Welby Hospital.

Marcus Welby Hospital has decided to form an HMO in which it wants to give physicians a major stake, in order to foster allegiance and encourage cost-effective treatment. You are consulted as a legal and management expert to advise the hospital on the consequences of forming the HMO as a nonprofit versus a for-profit entity. What are the relevant considerations with respect to tax exemption, the ability to raise capital, the role of physicians, and operational constraints?

Please all citation in APA style see attachment to complete the excersice

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Robert · Accepted Answer

Consequences of forming HMO 
Marcus Welby Hospital has chosen to make HMO in which it needs to give doctors a noteworthy 
stake, so as to cultivate faithfulness and empower savvy treatment. As a legal and management 
expert, I have given a chance for the consequences of developing HMO. The government 
advances not-revenue driven firms with the advantage of tax that incorporate tax exempt profit, 
waivers from premium assessments, as well as minimizing the cost of capital through tax 
exemption. Not-revenue driven HMOs get the profit tax treatment from federal, state and local 
governments under the supposition that they serve societal interests beyond the results that 
would happen in a market with just revenue driven firms. While it is enticing to make the 
conclusion from our work that revenue driven HMO transformations don't harm the general 
population. For-benefit HMOs will probably give the consumer data, for example, data about 
therapeutic care issues. (Town, R., Feldman, R., 2004).

Complete the Problem on page 445 in the text titled “Choosing a Corporate Form” in a one page paper. Submit your solution to your instructor. See page 369 for a general description of Marcus Welby...

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