Cases in Healthcare Finance

You have been asked by a health care magazine to write a series of articles focusing on health care financial concepts. The articles will be included in five consecutive issues and will be geared towards readers with little knowledge of finance. You must ensure that the articles are both informative and engaging to your audience. You must also ensure that your articles relate financial principles to the health care industry.

Terms of reference – This report has been asked for by Veronica Cozens, class tutor. The report asks to:

I really enjoyed this article, as it went into effective financial planning. The 2 major categories of cost are total charges (the patient's bill) and the cost of providing services. These 2 costs can be defined mathematically in the following indices: average revenue per patient day and the cost per patient day.

2. To introduce students to the process of problem identification and potential solution analysis that will be used in case discussions throughout the semester.

The case focuses on the charity program of Sunrise Hospital. The hospital recognizes charity healthcare in the form of bad debts and other services that are offered for free. The process has been faced with some issues, and these issues have halted the organization role of delivering charitable care to low-income people. However, this paper is going to analyze the case.

Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%

In Healthcare System the role of finance is an important aspect in healthcare. In the financial role of healthcare it involves handling operations such as negotiating contracts, making cash available for expenses such as payroll and cover cost for unexpected expenses. The role of finances also makes it capable for leadership to better make plans for the future, when finances are in order organizations can better equipped to make decisions such as is the organization financial able to expand test or treatments and are they able to buy new medical equipment.

Affordable Health Care Act: Should the Federal Government or State Government be in charge of our healthcare.

Of the ten most common reasons medical claims are denied I think that the #1 reason is incorrect patient identifier information. This is a mistake made I imagine more than anything else. If we get one number wrong it will throw everything else off. Like if we have the incorrect social security number or wrong id number.

Regardless we now know that health care is classified as a major business. We have for profit organizations, not for profit organizations and government organizations to supply the increasing demand for health care products and services. Each organization will be a product of their funding that they have or receive. The decision will be made from several different levels and areas within the organization, and they all have to report back to the stakeholders.

The Company provides care to residents under the Medicare and Medicaid programs. Revenue from the Medicare and Medicaid programs accounted for approximately 13% and 12% of the revenue from residential and healthcare facilities for the years ended December 31, 2014 and 2013, respectively. Future changes in the Medicare and Medicaid programs and any reduction of funding could have an adverse impact on the Company. Laws and regulations governing the Medicare and Medicaid programs are extremely complex and subject to interpretation. As a result there is at least a reasonable possibility that recorded estimates will change by a material amount in the near future. The Company believes that it is in compliance with all applicable laws and regulations

Review of two articles touching on the use of statistical analysis to help determine the future impact and creating more financial stability in their healthcare system. Finance ethics is more important than ever due to the importance of the conflicting fundamentals that most Americans want out of healthcare. The first article, The Ethics of Healthcare Reform, Issues in Emergency Medicine discusses those fundamentals and how cost containment can help the healthcare industry meet all four. The second article discusses the different creative approaches to prevent foreclosure for small community hospitals.

This case can be used in several ways. In the introductory course, the case can be used as the basic structure for a lecture or as a written assignment in conjunction with lecture and text material. In our more advanced courses, which usually have smaller enrollments,

* Remember, this is not a thesis or introduction of what you will talk about – it contains the major, specific content of each section. The second and third paragraph should be written after you have completed all other sections of this template.

All of these projects add up to a total of roughly $10 billion.  Internally generated funds were estimated to be $5 billion from net income and depreciation, requiring MoGen to find the other half of the funding from a different source.