Description
WEEK 1 prior to beginning work on this discussion, read Chapters 1, 2 and 3 of the textbook on the four elements of financial management. Additionally, you will need to read the What is GAAP? (Links to an external site.) web page and review the An Overview of Management Accounting (Links to an external site.) website.
In your initial post, describe a real-world example of each element by applying it to the operations or planning of a business where you have worked. Next, choose one of the elements and give an example of how you would apply it as the manager for a health care facility (i.e., primary care physician’s practice, a specialty practice, long-term care, clinic, hospital, etc.).
Your initial post should be between 250 and 300 words and cite the textbook and/or the required resources listed/linked in the directions using APA format as outlined in the Writing Center (Links to an external site.)’s Introduction to APA (Links to an external site.) resource.
Prior to beginning work on this discussion, please read Chapters 4, 5, 6, 7, and 8 in your course textbook and the Hospitals Become Cost Centers in Managed Care Scenario (Links to an external site.) article. Just like any industry, healthcare has its own language. Healthcare managers must be able to classify various costs associated with day-to-day operations. For this discussion, you will incorporate the course textbook readings to discuss the assigned costs listed below.
In your initial response, explain the cost assigned to you and give an example of that type of cost as it relates to a healthcare facility (i.e., physician practice, hospital, long-term care facility, urgent care, specialty group practice, or surgery center). Include in your response why it is important for the healthcare manager to know the differences between all the costs listed when determining financial status. Your initial post should be 250 to 300 words. The topic is Fixed costs
Week 4
Prior to beginning work on this discussion, please read Chapters 12, 13, 14 and 15 in our textbook and the Driving growth (Links to an external site.) article Your initial post should be 250 to 300 words.
It is important for non-financial managers to be able to identify financial statements and understand their purpose. For your initial response, you will need to discuss the following:
- Name the four basic financial statements.
- Choose one of the four and evaluate its purpose for the organization, including its role in the budgeting process.
- Explain what type of information can be derived from each statement.
- Describe the major purpose of financial statement.
Week 5
Prior to beginning work on this discussion, please read Chapters 16, 17, 22, 23, 27 and 28 in your course textbook, the Capital Budgeting in Health Organizations: Application of the Multicriteria Method Promethee V1 (Links to an external site.), Capital Budgeting (Links to an external site.), and The Increasing Importance of Strategic Capital Planning and Overview of Capital Budgeting (Links to an external site.) articles, as well as the Capital Budgeting (Links to an external site.) web page.
The most obvious cost in a capital budget is the actual cost of the capital expenditure item. We must also consider other costs that will be incurred when we make the capital expenditure (purchase). These costs are important to include because they can be the difference between a successful implementation of the capital expenditure item and staying on budget.
After reviewing the textbook readings,
- Provide an example of a healthcare capital expenditure.
- Explain the rationale behind the purpose of a capital expenditure budget.
- Include two other cost considerations and explain their inclusion in your capital budget plan.
- For example, if you are installing an Electronic Medical Records (EMR), you must include future cost for maintenance, software updates, new computers, etc. These are the hidden costs of operation often not considered in a capital budget.
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Explanation & Answer
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Discussion Questions
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DISCUSSION QUESTIONS
WEEK 1
Financial management is defined as the practice of effectively handling an organization's
finances and generally involves taking high-level planning and effective execution of the plans to
achieve financial stability and realize profits. Financial management is divided into four major
elements, which are planning, controlling, directing and organizing, and finally making the right
decision. In a previous company where I worked as a sales agent, our sales manager, in
collaboration with the financial manager, used the four elements of financial management to
increase sales (Siminica et al., 2017). They began with the planning element, where they
developed a detailed action plan on how to increase sales numbers. The action plan included
increasing advertisement activities and increasing the number of sales reps.
The second element is controlling, where the managers ensure that all aspects of the
organization are in line with the predetermined goal of increasing sales by setting the right Key
Performance Indicators that can effectively and quantifiably enable the organization to achieve
its goal. The third element entails organizing, directing, distributing the available resources, and
organizing the employees according to the laid plan. At this stage, the managers sourced for
funding outsourced some activities and adopted new software and technology to monitor the
sales increase progress and the progress of the various activities put in place (Siminica et al.,
2017). The last element is making the right and informed decision after investigating all the
options and possibilities. The managers weighed different alternatives and chose the best out of
them, which eventually helped the organization increase its sales ...
