Hospital Financial Accounting

1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement

The company likewise has already employed various strategies in order to maintain the high growth rate of the company. However these strategies is soon to reach its capacity to ensure growth. Based on the case as well, what seems to be lacking in the strategies that the company employed before is marketing, control of costs, and

According to the hospital’s five-year plan, an investment in capital equipment should boost the quality of services offered at the hospital. Many options of capital investments that hospital could invest in exist. However, this report recommends an investment in the MRI (Magnetic Resonance Imaging) equipment. This equipment involves a large capital investment upfront, but it can be profitable in the end. The hospital has considered factors such as the cost of this equipment, the facilities needed, and the return on investment of the equipment. The above factors are among some of the factors that are considered when buying large capital equipment for an organization such as a hospital (Keefer,

There are several reasons I recommend Trinity Community Hospital choose to lease space for the new orthopedic service line. Financially, this option results in the lease amount of cash outlay upfront. This would allow monies to be more effectively utilized for other expenses related to the new line. From a time stand-point, leasing would allow for the orthopedic service line to be opened much earlier than buying or constructing the space. Also, the current volatility of the market does not make this an optimal time to invest in real estate. Additionally, health care reform is still in it’s’ infancy and it is difficult to gauge the effect it will have on Trinity Community Hospital’s finances. The leasing option provides the hospital with the least amount of exposure and risk during this period of uncertainty.

One of their issues with staffing physicians is the local competition. They are either employed with other managed care facilities, contractually obligated to another facility, or have other priorities. Due to the number of patients, they are outgrowing their current facility and looking to expand. They have found an ideal location, but would have to invest $500,000 to remodel as well as $479,000 to purchase the building. Although the new location would appeal to Medicaid patients and the insured population, Mrs. Marrs is unsure if the time is perfect to expand.

The revenue cycle represent the flow of cash from the beginning to end and source. For any business large or small, public or private the revenue cycle is critical. In a hospital setting the revenue cycle begins at the time the patient first presents for treatment and is registered as a patient. This is “depicted within the text in Figure 2-1 as six stages- provide services, document services, establish charge, prepare claim/bill, submit claim and receive payment” (Cleverley, Cleverley, & Song, 2012, p. 14). Accuracy of information entered is paramount because the record created starts is the foundation for all future billing. If the wrong insurance information is documented time is lost on the back end of the cycle contacting the patient to update their

How do you see the various aspects of financial management as a whole for a healthcare organization? For example, how does one’s perspective influence decision making or how does the financial management relate to the organizational mission?

hospital’s leadership and physicians total asset control. Customization of the facility and control of the facility is a definite advantage. Appeal While renovating existing facilities should be more cost effective, it is still a short-term solution. A newly designed facility is a long-term initiative. New facilities bring in future concepts and all kinds of opportunities for new services. One of the other primary advantages to a new facility is that it has appeal to physicians, future recruits, current employees, and potential hospital donors. New facilities appeal to community investors as well. Financial According to one commercial real estate acquisitions and marketing manager, the assumption that leasing real estate costs less than building or buying real estate assets is completely fallacious. Because hospitals use different

Patient Accounting and Practice Management systems are designed to help health care medical practices are to improve the quality of care, cut cost, reduce risk, and increase revenues. When it comes to the size of a medical practice from small, or to a large medical practice, multi-location group this will feather the system to allow in creating and maintaining a patient billing information much faster and more efficiently then it was ever before. Medical Assistants are able to enter a patient information and post any changes much faster and more accurately with the use of a simplified medical billing software that promotes physician acceptance and much greater investment protection that provides faster insurance reimbursement and to improve

Without strategic planning, several things can go wrong including missing out on great opportunities. Strategic planning is an organization’s outline to help achieve its purpose. Although strategic planning begins at the top of the pyramid, it is more effective when it is carry out as a whole among other in the organization. Having a good internal control system in place protects an organization from high risk, fraud, and more. Jackson Memorial Hospital has several weaknesses which are similar to its competitors and other health care organizations. For instance, Mount Sinai Medical Center one of Jackson Memorial’s competitors, encountered lack of strategic planning that led to many issues such as with readmissions, surgical complications,

HCA, after following a conservative financial policy since its establishment, has entered the new decade preparing to make some changes in order to realign their financial strategy and capital structure. Since establishment, HCA has often been used as a measure for the entire proprietary hospital industry. Is it now time for the market to realign their expectations for the industry as a whole? HCA has target goals which need to be met in order to accomplish milestones in the future. The problem arises as to which area holds priority to the company. HCA must decide how the key components of their financial strategy and policy should my approached in order

In order for a business or corporation to grow and expand at a calculated pace, they must be able to strategize the proper business plan to get there. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Having a business

Though they are not entirely comprehensive tools, a great deal can be learned about a hospital or other healthcare organization for-profit or not-for-profit from an examination of their annual financial documents (Finkler & Ward, 2006). The balance sheet and statement of revenue and expense can both yield valuable clues even in the absence of other evidence about changes that might be occurring in the organization, a definition of the type and degree of certain problems that it might be facing, and potential opportunities for improvement in performance that might exist (Finkler & Ward, 2006). Comparing two or more years' worth of financial information yields even more valuable insights, tracking movement in the hospital or other organization's ability to finance its activities and thus continue providing services at the same level, quantity, and scope as current operation.

These health care organizations have two types of planning to follow, and they are tactical and strategic planning. When tactical planning takes place, there is a short term goal in mind (Society for Human Resource Management, 2102). The course of action for a tactical plan is to achieve a goal within a year or less time period (Society for Human Resource Management, 2102). A tactical plan has a smaller scope and shorter time span than a strategic plan (Society for Human Resource Management, 2102). It takes several tactical plans to achieve the strategic plan (Society for Human Resource Management, 2102). Strategic planning differs from tactical planning, because in strategic plan, the course of action is to achieve goals for the long term (Society for Human Resource Management, 2102). Strategic planning goals are usually wanted to be completed with five years (Society for Human Resource Management, 2102). The organization’s mission statement purpose and direction are reflected upon strategic planning (Society for Human Resource Management, 2102). Top management must view reports on operations, external environments and finances when looking to develop a strategic plan (Society for Human Resource Management, 2102). The development of tactical plans are influenced by strategic plans (Society for Human Resource Management, 2102).

These strategies are of significant value to how the organization looks at the long term operation of the company. These strategies are: 1. Where to put your financial and people resources, 2. Structure and processes that can deliver the strategies; 3. Metric and rewards to support strategy, structure, and process; 4. Values and behaviors required to achieve goals; ( www.managementparadise.com/forums/foundation-human)