Hospital Funding Essay examples

702 Words Jun 21st, 2014 3 Pages
Running head: Healthcare Funding Sources and Financial Planning

HCM410-1401A-02: Fiscal Management in Healthcare Services
Phase 1 Individual Project
Healthcare Funding Sources and Financial Planning
Andretta Hill
Colorado Technical University Online
Professor Jeremy Howell
January 14, 2014

Impact that Medicaid cuts has on Krona’s revenue Like many health care facilities, Krona Community Hospital will be affected by the cuts to Medicaid. Medicaid is the largest sources of revenue for many health center to include Krona Community Hospital. The impact of the Medicaid cuts cannot be overstated. Medicaid cuts will not only affect providers, it also affects patients, their families and the economy.
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Effects of Medicaid cuts on Financial Forecasting Health care facilities like Krona Community Hospital can use a predicted impact measure such as operating margin or net revenue because they can provide markers of financial stress. Other financial indicators would be affected by the changes in the hospital practice. Many health care facilities have started to do five year financial forecasting instead of doing a one-year financial forecasting plan. They take a very conservative assumption in that forecast. All the variables such as Medicare and Medicaid cuts have already been factored in (Carey, 2013).
Challenges, benefits and risks in utilizing capitation Capitation is a method payment for healthcare services provided. This method of payment is a set amount that is paid to providers of service regardless if the payer has been provided with a service or not. These provides are generally contracted with some type of HMO. The rate for the capitation payment is determined by patient demographics such as gender and age. This method of payment was established in part to improve, to increase access to healthcare to by patients, and to provide healthcare equality. Capitation has many advantages for patients and their physicians. Capitation was mainly established to forge a strong relationship between the patient and their physician. Capitation allow patients to visit the same physician for their

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