Universal Health Services : A Hospital Management Company

Following an organization announcement in 2015, the healthcare system was divided into four divisions headed by a leadership team of 5 that oversee all the divisions. The second division consists of the 3 regional hospitals associated with the New York Presbyterian system. Often hospitals associated with a healthcare system are hospitals waiting on approval from the city and HCOs involved. The 3rd division consists of NY-Presbyterian physician services. Lastly, the fourth division consists of all the health services that make up the health care system’s community and population health. These services include ambulatory care network sites and healthcare initiatives. As a Highly Reliable Organization, New York Presbyterian keeps track of multiple trends to shift and shape it’s organization for today’s always changing and complex healthcare industry. Through the tracking of consumer healthcare decisions, New York-Presbyterian uses this data to adjust its practices and policies to help patients make the best medical decisions and provide the highest quality of care. Positioned in one of the biggest metropolitan areas in the world, New York-Presbyterian keeps track of it’s competition by monitoring the consolidations of healthcare organizations within their market share. Through this monetization, the healthcare system prioritize its marketing strategy that allows them to sell the unique

In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons

(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.

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

The healthcare system in America started as a predominantly volunteer system where patients were required to pay little to nothing for treatment. Since it began, the healthcare industry has seen tremendous changes that have transformed it into a business entity which has operations like financial management, strategic planning and functional specialties to keep the industry viable. The industry is one of the largest in the country employing 15 million people with a projected increase of jobs with 3 million jobs annually. As the healthcare industry continues growing, services and personnel are changing, and various dynamics are coming into play to accommodate changes (Smith, Saunders, Stuckhardt, & McGinnis, 2013).

After reading the following, “From bottom to top: How one provider retooled its collections” (Souza &McCarty, 2007). The article sheds light on the fact that Sutter Health is a non-profit public based- healthcare system. Not to mention it is based in Sacramento, in the northern part of California. This type of healthcare systems services patients and families where the system providers have joined force and share their expertise that have helped progress and advance the quality of healthcare. According to Souza & McCarty, they reference the fact that the non-profit network has initiated the interface having the intentions of developing revenue collection for healthcare facilities that can collect from self-paying patients. (2007, p.68). However, with a traditional payment system it does have its disadvantages meaning there are delays in the payment process of the effective revenue system in healthcare facilities. Mainly, is the limitations of the processing because of the result of not having the accessibility of precise information on accounts. Souza & McCarty further discuss that fact that Patient Financial Services staff are not in a position to have the real-time information that aids in processing the financial and operational indicators of the healthcare facility. (2007, p. 70). There were also unproductive and incompetent performance measures in the

In addition to delivering health care of the highest quality, another main goal of a health care organization is to remain profitable and viable through effective financial management. In an effort to do so, members of administration along with the Chief Financial Officer (CFO) work diligently in attempting to maintain and sustain a successful health care organization by monitoring the flow of cash (in and out) in accordance to GAAP (Generally Accepted Accounting Principles), while ensuring the needs and wants of the consumers are met. With this being the case, health care accounting skills are equally important in

The first article “Community Health Systems to Sell Assets to Pay down Hefty Debt” is about local community health systems such as hospitals and facilities throughout the U.S. that has suffered a lack of earnings, patient admissions, profits, and share. Due to this disappointing news, community health systems will have to sell their assets in order to raise money to pay off their debt. By each quarter the losses were getting worst, community health systems continued to lose earnings and admissions. The company sold its biggest assets which were different hospitals, in hopes to pay off debt and improve financial operations. These divestitures also lead and contributed to several losses and improvements.

United Healthcare assesses that it services approximately 70 million Americans . Its entire system spans 676,287 physicians and health care professionals, 80,000 dentists and 5,190 hospitals, whilst their pharmaceutical management provides more affordable drugs to 13 million people.

It was in 1977 that the United Healthcare United Health group was founded by Richard Burke. The headquarters of the company are in Minnetonka, Minnesota. This organization works towards the betterment of people's health, it help them in living a healthy life by providing them with the kind of health care that would be best for them. The main focus of United Healthcare which is a major division of the United Health group is to provide the people with better health benefits and coverage.

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,

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.

There are many financial ratios used in evaluation of a healthcare organization’s performance but for purpose of this study, it will be limited to activity, leverage investment, liquidity and profitability.

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.