Health care financial management return on investment

User Generated

Onzovabxvggra

Health Medical

Description

You have been hired in the finance department at a large, metropolitan for-profit hospital. Your duties are very important to the entire hospital in terms of financing operating costs. Additionally, you are also in charge of 3 employees who work under you to help with the day-to-day accounting activities. Your role includes budgeting, managing the general ledger accounts, utilizing financial formulas to perform accounting activities, and training and development of your 3 employees. This professional career is exciting and challenging for you but is also enjoyable and rewarding as you work your way up the career ladder toward reaching your goal of becoming the chief executive officer (CEO) of the hospital. Due to scarce resources, your organization is faced with the decision of choosing between mutually exclusive projects (I.e., Build a Rehab. Center or Build a Neonatal Wing). You have been asked to develop a financial analysis of two projects and based on Net Present Value (NPV), Return on Investment (ROI), and Profitability Index (PI), Briefly explain the following concepts and their use/value in assessing the validity of the two mutually exclusive projects:

  1. NPV
  2. ROI
  3. PI
  4. payer (aka case) mix

Submitting your assignment in APA format means, at a minimum, you will need the following:

1. TITLE PAGE. Remember the Running head: AND TITLE IN ALL CAPITALS

2. ABSTRACT. A summary of your paper, not an introduction. Begin writing in third person voice.

3. BODY. The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA level headings and references. The deliverable length of the body of your paper for this assignment is 3-4 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.

4. REFERENCE PAGE. References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper and lower case usage as appropriate for the type of resource used. Remember, the Reference Page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: HEALTHCARE FINANCIAL MANAGEMENT

Healthcare Financial Management
Name
Institution

1

HEALTHCARE FINANCIAL MANAGEMENT
Healthcare Financial Management
Abstract
The financial management is key in the operations of hospitals as well as making
financial decisions for the business. The paper seeks to analyze keenly two projects that the
hospital want undertake one of them depending on the net profit value (NPV), return on
investment (ROI), profitability index (PI), and payer (aka case) mix. Using these financial
information system the financial officer will make prudent decision based on the net profit value
of the business thus will influence the amount to be invested in the new project. Moreover, the
return on investment of the two projects of either building a rehabilitation center or a build a
neonatal wing depending on how they will generate income. In addition, the profitability index
of the projects if it is greater than one the project is viable when you take the cash inflow and
divide by the initial capital to get the ratio. Last, the hospital can decide to apply payer mix
where different cases are handled in groups so as to minimize of space and time so as to
maximize profits realized by the business where one consultants looks at different cases in one
ward. The decision-making process is key regarding the kind of investment to undertake hence
very essential to the running of the hospital. Such that if the financial officer does not make wise
decisions based on the financial instruments the possibility of the business failing is high.
The Net Profit Value (NPV)
NPV is used in getting the current value of the all the fu...


Anonymous
This is great! Exactly what I wanted.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags