Healthcare Financial Management, assignment help

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Please answer each question in 250 words or more with references and in text citation.


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Your Discussion postings should be written in standard edited English and should follow APA guidelines. Be sure to support your work with specific in-text citations from this week's Learning Resources and additional scholarly sources such as those found in the Kaplan Library. Refer to the Pocket Guide to APA Style to ensure that your in-text citations and reference list are correct. Answers must be 250–350 words (not including references). Discussion #1 Choose one of the following: 1. Briefly discuss the role of finance in the healthcare services industry. Has this role increased or decreased in importance in recent years? What is the impact of the Affordable Care Act (ACA) on the role of finance? 2. What are some of the industries in the healthcare sector? What is meant by the term healthcare finance? What are the two broad areas of healthcare finance? Discussion # 2 Choose one of the following: 1. What are the three primary forms of business organizations? Describe their advantages and disadvantages from a financial point of view? 2. Review managed care contracts for different payment plans (PPO, HMO, Fee for services, etc.) and describe provider incentives and risks under each of the following reimbursement methods: Cost-based Charge-base (including discounted charges) Per procedure Per diagnoses Per diem Global pricing Capitation. Discussion #3 Choose one of the following: 1. The income statement, balance sheet, and statement of cash flows are three major financial statements that present varying snapshots of an organization's financial position. For this topic discussion, consider a healthcare organization with which you are familiar with and examine the purposes and components of these documents. How they may be utilized within healthcare organizations? 2. Consider a healthcare organization with which you are familiar with and explain the difference between cash and accrual accounting in healthcare setting. Be sure to include a discussion of the revenue recognition and matching principles. Discussion #4 Choose one of the following: 1. Consider an organization with which you are familiar. Do you know how it reports its financial condition? How does it compare to another organization of a different size, with a different ownership structure, that provides different services, and/or in a different market? 2. Consider a healthcare organization with which you are familiar, review it financial statements and apply the different financial ratios presented in the textbook. What do the different groups of ratios tell you about an organization’s financial condition and position? What is the key difference between financial statement analysis and operating indicator analysis? How are these types of analyses useful to healthcare managers and investors? 3. Consider a healthcare organization with which you are familiar and discuss what are some of the problems or challenges inherent in financial statement analysis? Discussion #5 Choose one of the following: 1. Consider a healthcare organization with which you are familiar, and discuss how do a provider's incentives differ when the provider moves from a fee-for-service to a capitated environment? 2. Discus briefly the activity-based costing (ABC) concept and explain how ABC can differ from traditional costing approaches? Consider a healthcare organization with which you are familiar with and it uses ABC model. Discussion #6 Choose one of the following: 1. Healthcare organizations strive to manage working capital in such a way that they can reliably cover their short-term expenses while also getting the best possible benefits from their capital. In managing working capital, healthcare organizations face some common challenges, as well as other challenges that are particular to the institution. What challenges would a for-profit facility that has a constant stream of revenue face in managing its capital? How would these challenges differ from a military hospital that is given its funding at the beginning of the year? 2. Bring to mind a healthcare organization with which you are familiar with, and think through the various challenges it might face in managing its working capital. What techniques or policies can it implement to effectively manage their working capital? Discussion #7 Choose one of the following: 1. Select a healthcare organization with which you are familiar with (or one that you would like to learn more about), and think about the role of budgeting in that particular organization. Conduct research, as needed, to find out more about the budgeting process of this organization. 2. Bring to mind a wide range of healthcare organizations, such as a long-term care facility, large for-profit hospital, physicians' practice, VA hospital, or state-run clinic. Consider how budgeting would be influenced depending on an organization's sources of funding. How do the purposes or uses of a budget vary according to the kind of healthcare organization it is? Discussion #8 Choose one of the following: 1. What types of decisions would need to be made before the investment is made? Indicate the main kinds of information/data needed to evaluate this capital investment project. 2. Consider a healthcare organization with which you are familiar with and present one or two challenges that are likely to arise during this decision-making process, as well as possible solutions. Discussion #9 Choose one of the following: 1. Briefly describe a scenario in which a particular healthcare organization is thinking about making a capital investment. How should the organization go about selecting metrics for evaluating this capital project? Would it rely on one metric or select a combination of metrics? Present the pros and cons of your position. 2. Explain the concepts of net present value and internal rate of return analysis. What do the results of net present value and internal rate of return analysis tell senior managers of an organization? Would sensitivity analysis be a useful tool for assessing this capital project’s risk and return?
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Running Head: The Healthcare Industry

1

The Healthcare Industry
Student Name:
University Affiliation:
Instructor:

The Healthcare Industry

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Discussion 1: Question 2
The healthcare sector, being one of the largest in the world, forms a large part of the
economy of most developing countries. The sector constitutes many industries, each comprising
of trained professionals who deliver quality healthcare services to consumers. The main
industries that constitute the healthcare sector include the health services industry which carries
out hospital activities, the pharmaceutical and biotechnology industry, health insurance industry,
medical equipment and supplies industry and consulting firms (WHO, 2015). Consulting firms
provide consultation services in the fields of physiotherapy, midwifery, hydrotherapy, medical
massage, speech therapy among others. The health sector also consists of educational and
research institutions, some of which are government sponsored while others are private
institutions.
Healthcare finance is money set aside by the government or non-government
organizations to cater for the cost of provision healthcare services to individuals. The services
are usually paid for in form of government programs such as Medicaid and Medicare, and also
by employers through private health insurance plan (NHE Fact Sheet, 2015). Healthcare finance
enables organizations to plan for and acquire healthcare resources for individuals at a convenient
and less costly price. Employers use healthcare finance to cater for the wellbeing of their
employees.
Healthcare finance consists of two broad areas which include financial accounting and
managerial accounting. It is concerned with accounting and financing functions of a healthcare
organization. Financial accounting involves keeping records of financial transactions within an
organization and providing a summary of the transactions. Managerial accounting involves

The Healthcare Industry

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managers making financial decisions based on theories, concepts and principles derived from the
organization (Jody B. et al., 2000).

The Healthcare Industry

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Discussion 2: Question 1
Primary business organizations can be of three main forms; sole proprietorship,
partnerships and corporations. Each of these forms of businesses has its financial advantages and
disadvantages (Brunei 2016).
Sole proprietorship is a form of business owned by one person, the sole proprietor, who
carries out all the activities involved in the business. Some of the advantages of this form of
business are that the procedures of its formation are simple and less costly. Government
regulations involved are minimal and the sole proprietor pays low cooperate taxes compared to a
partnership or a co-operation. The owner also enjoys all of the profits alone. However, the sole
proprietor has unlimited liability and bears all the debts and losses of the business. Capital
involved is limited thus limited chances of expansion. Furthermore, the existence of the business
depends on the existence of the sole proprietor, thus if he/she dies, the business also dies.
Partnership form of business is one created by two or more people under the Partnership
Act. The starting costs are low compared to corporations, with minimal procedures. The profits
of the business are divided equally among the partners and are taxed as personal income. Some
of the disadvantages include unlimited liability where the life of the business depends on the life
of the partners. Losses and debts are also shared equally among the partners and there are still
limited chances of expansion since they cannot sell shares to the public.
A corporation is a form o...

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