Case Study #1: Green Valley Medical AEM 4570: Advanced Corporate Finance Name: Di Hu Net ID: dh583 1. What are the key elements of Green Valley’s strategy? a. What kind of hospital is it, and how does that relate to their overall strategy? Green Valley Medical Center is a nonprofit teaching hospital comprising of 330 beds affiliated with a large state university in a midsize town located several hours from the state’s two urban centers. It was the only regional hospital, and one of only two in the state, with facilities in cardiology, oncology, and neurology, specialised in teaching, research and clinical care. Moreover, Green Valley had issued municipal revenue bonds on several occasions to finance large …show more content…
The current capital budgeting system is a priority assessment. First, individuals submitted requests to their department head if the costing was $1,000 or more, classified as new and replacement equipment costs, and under $1,000 costs were classified as operating expense. Second, each department head ranked all requests referred to the performance from last year, and deleted unnecessary requests. Third, the hospital’s fiscal affairs department combined and prioritized along with the requests of all departments to form one master list after receiving the list and Equipment Request Form from each department head. Finally, the Board of Trustees reviewed and approved the master list at their November meeting. b. What are the flaws to this system and the potential consequences of continuing with the existing capital budgeting system? The biggest flaw of existing capital budgeting system is rarely as objective. Although the financial consequences of capital requests were taken into consideration, the financial data presented by the departments is unreliable and often unfounded. In the decision making process, medical department produced resistance continuously. Due to the lack of objective, the capital budgeting system was not aligned with the hospitals best longterm interests. There was an unwritten policy that medical equipment had priority. However, there was no financial
The current cost system allocates overhead costs once a year, as a function of direct labor dollars. This allocation strategy results in:
For 13 years, from 1968 to 1981General Hospital grew as a nonprofit hospital in their community by 100 beds, from 175 to 275 beds, and still maintained 90% occupancy. It was able to
This hospital is a 65-bed rural hospital but it is the job of every hospital to give the best patient care possible. With a
Budgets involve and affect the employees and the members of the deciding board, they may cause conflict. There may be difficult opinions on how limited funds are spent. Some departments e.g. production with tight budgets could feel self-conscious. This means decision will be slowed down and this can also slow down the production rate and this means ASDA would not be able to male as much in the given
The organization provides the usual array of inpatient services expected in a moderate-sized community hospital. A local nursing home and retirement community is for sale, and the organization is considering the purchase of that agency. There is a regional hospital that is trying to establish a statewide hospital network. There is a local county health department that provides some clinic services, primarily for the uninsured.
Describe the budget process and how staff members at the unit level impact the budget.
General Hospital - offers various services like emergency, general, critical and intensive care to various
Hospital B was a not-for-profit organization, located in west side of town. It consists of 154 inpatient beds and a geriatric health center with 100-106 beds, 13 transitional beds and 7 rehabilitation beds. Total staff of 914 employees. It is an old facility and has earmarked $20 million for renovation to existing emergency room and ICU. Appendix 1, Table 1 provides an overview of the two facilities before merger and an overview of PRMC after Merger.
The hospital will have the following departments. Orthopedics, physiotherapy, radiology, obstetrics & gynecology, general medicine, general surgery, cardiology, oncology, neurology, ophthalmology, pediatrics, and pathology. In terms of collaboration, the hospital intends to collaborate with Hackensack University Medical Center North at Pascack Valley.
Hospital AB and Health Center is a community based acute care general hospital. The hospital is proactive in seeking methods to identify and provide all sources of community benefit and charity care. The mission of the hospital as stated in administrative service manual policy 726 (2005) is “With caring and compassion, we will improve the health and quality of life of the people we service.” The purpose of existence of the hospital is the commitment to patients and community to first understand their needs, second to provide services that meet these needs; and third, the recognition that service and clinical excellence are only achieved if they are delivered with caring and compassion.
have been to some of the Valley Health System hospitals a few times, and there has not been a time where I've left their hospital unsatisfied with the care I have received. I cannot say the same for some of the other hospitals I've been to. I would prefer Summerlin Hospital out of all the Valley health system hospitals because it has a pediatric emergency room unit, a pediatric intensive care unit, a maternity unit, and a cardiology unit, which I am interested in exploring in the near future. I agree with Summerlin Hospitals values, which are set around providing the patient with exceptional care while respecting their dignity and emotional well-being as well as helping their families instead of only focusing on the patient while putting aside
Well, the sitting on 4 acres the hospital encompasses Ronald Regan UCLA Medical center, Stewart and Lynda Resnick Neuropsychiatric Hospital at UCLA and Mattel Children’s Hospital UCLA. Some key features I found extremely helpful is their organization. Every floor of Ronald Reagan UCLA Medical Center is devoted to a specific specialty and equipped with all of the essential support equipment and supplies. Every floor has its own satellite pharmacy, dialysis storage, respiratory therapy workrooms, and resident doctor sleep rooms. Additionally; each patient room has the ability to convert into an intensive care unit (ICU) to allow for the continuous care of a critically ill patient in one room. This makes caring for patients extremely easy as everything they need is made available to them at the exact moment of a potential emergency. (Ronald Regan UCLA Medical Center, 2013)
Additionally, the unwillingness of the business office employees to accept onsite help from the hospital financial analyst team. They appear to be content with the status quo, which has resulted in their current financially precarious situation. They do not have the foundation needed, which should be as described by Weiss, Hassell, and Parks (2013) “…fertile enough to accept the seeds of change and to nurture them to grow” (p. 492).
Budget is time-consuming, especially if it involves a poorly managed company. The budget only pays attention to the quantitative aspect of business while neglecting the qualitative aspects. It does not consider the quality of services or goods and therefore inconsiderate of customers’ satisfaction. Another disadvantage of a budget is that it is inaccurate. A firm rarely “makes budget.” The hope is that the business activity will be close to the budget, but it could be off considerably and lead to bad hiring, spending and production decisions. This is because budget preparation is based on assumptions and thereby changes in the business environment could lead to unachievable
In April of 2000, the Downtown Health Clinic (DHC), which is run and overseen by Perpetual Mercy Hospital (PHC), found out some troubling news and was very concerned about it. Perpetual Mercy Hospital was concerned about the possibility of a establishing a similar clinic five blocks north of their facility. The main concerned are that the new and upcoming clinic may take away DHC’s current patients and that such a similar clinic so close could put a damper the DHC’s profitability and financial