Financial & Managerial Accounting Essay

1315 WordsJun 20, 20136 Pages
Final Paper: Option 1 MHA 612 Financial & Managerial Accounting Executive Summary The Report describes a proposal for the group of 20 of doctors with regard to the creating a hospital. Due to the 500,000 population of the city $100 million dollars would actually be a great start. Because the facility would be located 30 miles from the downtown area it would allow the facility to attract patients without being crowded. On the downside this affects its financial position and market condition because of distance. A lot of patients are not able to get to the doctor due to the high gas prices. Using various strategies, such as looking into ways to connect with public transportation to deal with this problem and gain…show more content…
The United States spent $1.9 trillion, or 16 percent of its gross domestic product (GDP), on health care. This averages out to about $6,280 for each man, woman, and child. Whether a patient needs immediate emergency care or long term inpatient care, the cost of healthcare for each individual is distributed unevenly. Analysis of these spending patterns, how they change over time, and how they affect different payers should be taken into consideration when making plans to build a new facility. Insurance providers such as Medicare, Medicaid, private insurers, employers, and consumers shed important light on how to best target efforts to contain rapidly rising health care costs. Background Over the past years, “the healthcare sector of our economy has grown rapidly”, (Cleverley, Cleverley, & Song, 2011, p. 10). In order for healthcare organizations (HCOs) to survive in our financially changing healthcare environment, they must be economically stable. The understanding of the effects of economic developments on finance is more important than ever. By understanding the financial and economic implications of our economic system, healthcare organizations will be capable of securing economic stability. When trying to stabilize financial security in healthcare capital planning is the best approach. If the working capital is not managed efficiently, the flow of money gets choked, raw material supplies interrupted, wage payments delayed,
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