Financial Impacts and Constraints Paper

Financial statement analysis is the process of identifying financial strengths and weaknesses of a firm by appropriately establishing a relationship between the items of the balance sheet and the profit and loss account. Financial statement plays an important role in setting framework of managerial decisions. Operating indicator analysis are quantifiable measurements that help an organization define and measures progress towards organizational goals that have been defined and agreed upon by management. These goals may change as an organization’s goal change. Operating indicator analysis in health care are part of the health service manger’s quality and risk management plans. Plans are chosen based on the operating indicator analysis based on several factors such as regulatory and accrediting body initiatives and recommendations as well as identified organizational improvement areas. Generally, this analysis for health services is aimed at making sure program or service does what it is intended to do and do it well. Health service managers need the information provided by financial statement analysis. They need to know how their organization is doing financially, what their rate of profit is and whether or not they are they are managing their inventories and accounts receivable efficiently. This can help managers to decide if any changes need to be made and how to allocate their financial resources. Many managers of healthcare facilities use their organization’s financial statement analysis to calculate various ratios and

Pharmacists are part of the patient care team, responsible for overseeing the best, safe, and management cost on medication therapy using evidenced of medicine to improve patient care in all patients. Medical staff and other team are depending on pharmacists on their knowledge of drugs and collaborative practice. In larger hospital there are pharmacists on different floors and opportunity to interact with other. Hospital pharmacists gather with multidisciplinary team to help improve therapy by providing clinical services to patients. Let see how pharmacist’s role in the hospital setting and a scenario where the pharmacist’s involvement make an impact on health facility, medical team, and patient. To begin with, I will talk about pharmacist’s

Another term often used with both not-for-profit and for-profit hospitals is uncompensated hospital care. With not-for-profit and for-profit, revenues come from daily operations. What happens if a person cannot afford the care in a not-for-profit hospital? Regardless of the type operation, hospitals must stabilize the patient and transport to a public hospital, even though they are not required to treat these patients. This uncompensated care is classified as uncompensated care, bad debt, or charity care. For-profit hospitals write off this bad debt and use these figures to offset their profits and to assist in developing their costs to Medicare and Medicaid programs.

The role of finance in Health Care Systems, Inc. as a regional not-for-profit hospital relates to both the accounting and financial management aspects of the business. Facets of both accounting and financial management are intertwined with maximizing productivity by way of managing and analyzing financial operations to ensure resources are being utilized properly (Gapensiki, 2013). The divulgence of financial reports to managers and investors will aid in the development of plans and budgets for future growth, assess acceptable levels of financial risk, manage contracts appropriately and make decisions related to capital investments allowing the organization to expand service offerings thereby demonstrating greater value in the community. Operating as a not-for-profit entity requires that the hospital operate exclusively in the interest of the public for a charitable purpose. Through understanding who the primary third party payers

Effective financial management is the basis of thriving health care organizations. Organizations must make good investment decisions based on objective analysis (Healthcare Financial Management Association [HFMA], 2005). Integration of financial management principles provides decision makers with guidance to make capital decisions maximize mission-based benefits at effective costs (HFMA, 2005). An operating budget is the statement of profit and loss for the entire organization. Various health care entities prepare operating budget for the following year for discussion and approval by top management (Academic Writing Tips, 2011). At the end of the year, departmental managers provide an account for the previous year’s

Revenue determination is an important tool for health care organizations because it allows for efficient management of payment systems. This paper will look at the different components that form the payment-determination bases of revenue determination. Moreover, the difference between specific and bundled service payments will be discussed. Lastly, the three ways health care providers control their revenue function will be highlighted.

The total revenue of any firm is calculated by adding the total sales of good and services in a given period mostly one year as explained by Austin, (2002). According to St Jude children’s Research Hospital’s financial statement for the year ending June 2014, the total revenue totalled to $ 410,148,655. It was achieved by the addition of net patient service revenue ($ 104,014,142), research grants and contracts ($ 93,786,845), net investment income ($ 201,569,845), net assets released from restrictions (0) and other revenues ($ 10,778,398).

Gross Revenue – Gross revenue continued to make positive strides in March with gross revenue $327k in excess of budget. Gross revenue for the Hospital was $302k over budget for the month, with the largest over budget variances in Radiology ($329k), Lab ($111k) and Cardiology at ($70k). The largest under budget variances were in Med Surge ($112k) and Oncology ($85k). The Medical Group’s gross revenue was essentially on budget, with notable over budget variances in NLH Orthopedics ($82k)

There are many challenges that face Walgreens in the industry it operates. One is because of the hard financial status that many people are facing thus they are faced with the tough decision on whether to put food on their table or buy medication. This can be seen in the decline in pharmacy sales over the years ADDIN EN.CITE 19991499("Drug Watch," 1999)1499149917Drug WatchThe American Journal of NursingThe American Journal of Nursing1899101999Lippincott Williams & Wilkins0002936Xhttp://www.jstor.org/stable/3521900( HYPERLINK l "_ENREF_1" o ", 1999 #1499" "Drug Watch," 1999). Walgreens has, however, managed to keep their growth at double digits while facing the slump in growth numbers. The company has managed to do this by striving to offer their drug products at the best price possible as a result of its economies of scale and pricing policy.

Current Industry. The retail drug industry’s 2010 combined annual revenue was $277 billion, according to the National Association of Chain Drug Stores (Drug Store Industry…, 2011, par. 4).The big players in this industry are CVS Caremark, Corp. Walgreen Co., and Rite-Aid, Corp with Wal-Mart and Target developing more of a presence in recent years. According to the article, the drug store industry is very concentrated with the 50 largest companies generating about 70 percent of the industries revenue (Drug Store Industry…, 2011, par. 4). The industry had grown substantially in the last 50 years and will continue to innovate and develop well into the near future.

How Medicare, Medicaid and private insurance benefits affect how the hospital bills and collects revenue. To begin with, a hospital is funded by numerous fairly distinct systems, depending on who is paying. Medicare program for the aging normally pays hospitals a flat payment per hospital case. With the federal-state Medicaid program the poor, sightless and disabled, hospitals obtain either one case-based expenses or a two set amount of dollars per day of inpatient visit (per-diem payments) or (3) fees for single services and supplies . The levels of the payments are set individually by the state managements. In numerous states payments are greatly lower than the full cost of providing the services. Private insurers

Financial ratios allow health care companies to compare themselves to competitors and identify its personal strengths and weaknesses. Mostly, utilized by bankers, creditors, shareholders and accountants to evaluate data presented on entity financial statements. Depending on the consequences of the evaluations, bankers and creditors may additionally select to extend or retract financing and capability shareholders may additionally regulate the level of commitment in an enterprise. Financial ratios are essential gear that judges the profitability, performance, liquidity and solvency of an entity. Some key element stakeholder look is the Operating margin- operating margin indicates the organization's profitability from operations, including investment-related

Along with the company's strong market performance, the Walgreens Corporation continually shows considerable growth. 2006 ended with Walgreens' 32nd consecutive year of record sales and earnings ("Walgreen Co. reports..., 2006). Walgreens' 2005 sales of $47.4 were a 12.5% increase over the previous year and over $1.5 billion in earnings were a 15.5% increase over the previous year (Walgreens Corporation, 2006a). Furthermore, a new Walgreens store opens approximately every 19 hours (Carpenter, 2004). Consequently, the Walgreens name carries considerable brand equity as a nationwide retailer known for quality and convenience. In fact, Walgreens has positioned itself as the drugstore offering the most convenience (Walgreens Corporation, 2006c). As such, Walgreens offers drive-thru pharmacies in over 80% of its stores, and nearly 30% of stores are open 24 hours a day (Walgreens Corporation, 2006a). The company strives to offer a merchandise mix in line with this focus, providing customers with one-stop stopping for not only prescription drugs,

Set-up and workflow of my pharmacy is pretty good for patient centered care. Patient does not have to wait too long for their prescriptions to be filled. Patients can call for their refills via telephone or online, which makes their life easy as they don’t have bother coming in-person for refills. Patient profile shows all medication history as well as number of refills remaining. This makes it easy for pharmacist to know whether to refill a prescription or call doctor for refill request. After confirming to fill a prescription pharmacist runs claim through insurance and print label after claim is successful. All medication is arranged alphabetically on shelves, thus it is easy and quick to retrieve. Then after technician fills medication and then pharmacist checks it. This workflow is quite smooth and quick to process. Final check is done by pharmacist, who confirms right medication for right patient as well as the NDC dispensed, amount dispensed, direction for use, and day supply. All these steps of process take place on working table in sequential order, which helps to reduce errors in filling and have effective prescription filling. Once the prescription is filled pharmacist do all paper

Lastly, the revenue budget is the final component of the operating budget which projects the income the organization will receive for providing care. Although nurse managers/leaders may not be involved in developing the revenue budget, having knowledge about it is essential for great decision-making.