Healthcare Operating Indicator Analysis

RECOMMENDATION  There is “an inherent conflict between best care and financial performance”. The CEO states that “Finances are not, and never have been, our primary concern.” However, the business must address its decreasing profitability to be able to continue to survive. This will become even more urgent if the reduced government spending that the CEO foresees happens.  The organizational culture is high quality care, high-performance and non-profit which must be taken into account in any solution. The healthcare business has a clear focus and is very successful at continually improving its patient care and processes.  While clinical performance improvements have resulted in revenue losses for the Intermountain healthcare business the Intermountain health plan, SelectHealth, and other health plans that buy Intermountain health care services have benefitted. Intermountain needs to translate these benefits into additional profits to support its main business, healthcare.   Its skill at providing this care should translate into significant market advantage for SelectHealth and for Intermountain when selling

Financial statements paint a picture of financial health of an organization. Important aspects of the financial statement of a health care organization are ratios. Analysis of ratios show how two numbers relate or compare to one another. Ratios are a way for organizations to make comparison. These comparisons not only encompass what is happening presently but can also be used to make comparisons about numbers and ratios over time. Ratios are a way for organizations to compare themselves with competitors and the industry. (Finkler, Kovner, and Jones, 2007). There are four major ratios that financial statements analyze 1) liquidity 2) activity 3) leverage and 4) profitability. The financial statement for Mayo Health System

Operations management is the organizing and controlling of the fundamental business activity of providing goods and services to customers (Encarta, 2005). In the healthcare industry, operations management generally focuses on providing a service of healthcare to patients. An organization has three basic functional areas, and theses are: finance, marketing, and operations (Operations Management, 2004, p.4). Since operations is one of the three basic functions of an organization it holds a strong significance in the healthcare industry. The contents of this paper will explain what operations management means to the writer, and why is operations management important to a healthcare organization.

Each aspect plays a role, as financial management as a whole impacts the health care organization in a significant way. An example (that ties to evidence) of a primary component is the model analysis of the insurance system that affects the health budgeting spending on a statewide level. Further elaborating, the insurance system affects the input and output of the external categorization of the practical approach for a health care organization to utilize their primary care towards patients. Thus, as a result the aspects shift according to model process. Additionally, one’s perspective plays an important role in influencing decision-making in regards to financial management for healthcare. This is because the individual plays a primary role in the performance and internal indicators of the direction of the organizational mission; thus their output affects the organization’s advancement.

Organizations across the board monitor performance in order to be profitable, and make their stakeholders happy, including healthcare organizations. The following paper will address similarities along with differences among three specific healthcare organizations; long-term care, VA hospitals, and community/public health systems. We will also discuss how each organization monitors performances, and how each organization achieves regulatory and accreditation compliance. Communication with leadership in order to align organizational goals, and compliance with regulations and development of risk and quality management systems will also be addressed.

(MCOs) operating. The hospital group is the state’s largest not-for-profit organization and boasts an impressive performance plan, serving the healthcare needs of approximately 8 million citizens in Virginia. Moreover, Chesapeake Health Plans was the first organization to successfully attempt to request and obtain the highest level of accreditation from the National Committee of Quality Assurance (NCQA). Furthermore, Chesapeake health plans are structured to provide medical plans that cover services under the HMO’s, PPO’s, POS, and Medicare HMO’s. Chesapeake health plans attributes a considerable portion of their net service revenue generated to their effective HMO health plans, which realized a 46% of total revenue, while their Medicare HMO produced an impressive 39% of total revenue. Furthermore, their Preferred Provider Plan (PPO) generated 10%, and the Point of Service Plan (POS) saw a 5% figure. This case study financial analysis will effectively assess Chesapeake Health Plans: HMO financial performance, focusing on a competitive analysis, a cash flow analysis, clear profitability ratios, liquidity ratios, debt management ratios, asset management ratios, operating indicator analysis, a comprehensive financial assessment of Chesapeake’s financial state, as well as effective fiscal recommendations for their organization.

Examine the financial characteristics of health care delivery along with managing costs, revenues, and human resources

Analyses used to collect the data were the profitability, break-even and utilization/volume. A dashboard analysis was also used. To analyze the profit of the organization over the next five years, profitability analysis was used with considering inflation rates for each item. Break-even analysis was used to compare the amount of additional visits per day if the clinic operated as-is to operating with the expansion of the new marketing program. The break-even analysis was also used to recognize the volume required to cover the costs of the marketing program. The dashboard analysis was then used to summarize all analyses used.

Palomar Health is one of the largest health care districts located in California around San Diego Counties. Palomar Health operates three hospitals, in addition to home health care, surgery, skilled nursing, ambulatory care, behavioral health services, wound care, and community health education programs. This paper will analyze Palomar Health’s financial statement from fiscal years following 2012 to 2015. An in dept analysis of the Consolidated Statement of revenue, expenses, and changes in net position will be examined to better understand the organizations standings of their financial outcomes for those following years (McIntosh L. 2015).

Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,

The following pages present a brief analysis of sample data from one healthcare organization. Accompanying this written report are spreadsheets of the company's financial data its balance sheet and its statement of revenue and expenses that provide not only the figures from the audited reports of the hospital examined, but also show the change from year to year on each item as both a dollar amount and a percentage. Changes of more than five percent are considered worthy of discussion, and as these documents show much

It is important for healthcare organizations to understand their present performance and weak areas in order to generate more effective operational strategies. Financial ratio analysis is an effective tool to determine hospital’s performance on several indicators such as ability to pay debt, capability to generate revenue, and sales performance etc. The objective of this paper is to describe role of different financial ratios in understanding organizational performance and in developing new strategy. The paper also presents comparative ratio analysis of local healthcare organization and industry

The hospital industry consist of privately and publicly owned and operated hospitals and medical facilities. The financial backgrounds of these assorted categories of organizations are sizeable and contrasted. Therefore, industry ratios are to be considered and evaluated from a greater proportion in order to identify with the financial data involving the industry as a whole (Dunn & Becker, 2013). Based on analysis and evaluation of the financial ratios gained from Nasdaq and Google Finance, it is apparent that the hospital industry is gradually rising and supports increase in profitability. These ratios are divided into several categories: Growth rates, financial strength, valuation, profitability, efficiency, dividends, and management effectiveness.

Financial statements have several key components and specific criteria into them to relay the detailed information for auditors and management. A deeper look into financial statements and the many concepts surrounding them are needed to explain in more detail. It’s also important to recognize the Auditor’s opinion letter, balance sheet, operating statement, statement of changes in net assets, and statement of cash flows and footnotes of their involvement in the process. Relevant accounting articles are a useful supplement to financial statements and how they enhance concepts in the financial statement. The meaningful uses of financial statements for health care organizations are the epitome of current and future success of financial health.

The health of any organization or firm is dependent upon the numbers associated with it. These include the firm 's income statement, balance sheet, statement of cash flows, and ratio analysis. For any investor, lender, or owner to have a full picture of the performance of any entity, it is imperative that they have an in depth knowledge of the construction of values associated with individual line items described and detailed in these documents. In addition, the overall health of the organization can be determined by the reflection of said numbers. In short, these documents make up the nutrition label of the specific company (U.S. Security and Exchange Commission, 2007).