...Cases in Healthcare Finance Case 16 Solution Case 16 - 1 CASE 16 SOLUTION (11/17/10) Copyright 2010 by FACHE SOUTHERN HOMECARE Cost of Capital Case Information Type This case is nondirected, in that it does not contain a specific list of questions that students must answer. Rather, the case contains general guidance or concerns expressed by various parties that students should consider when developing their solutions. If you, as the instructor, want to convert this case to a directed case, and hence provide your students with very specific guidance questions, you can make available the applicable questions for this case contained in the Case Questions section of the online material for instructors. Purpose This case focuses on the estimation of the cost of capital for a business. There is minimal quantitative analysis required, but there are a significant number of conceptual issues that are addressed in the case. Complexity The calculations are not complex, but many of the issues merit a great deal of discussion and require a sound understanding of cost of capital principles. Model Description The model takes much of the busywork out of the case, so it enables students to spend more time on interpretation and evaluation. Like most case models, the student and instructor versions differ only in regards to the input data. The instructor’s version contains the complete base case inputs, while these inputs are zeroed out in the student version of the model...
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...Reporting Practices and Ethics Monika Kaloyanova HCS/405 August 31st 2015 Professor Joe Gazdik Introduction There are a lot of important parts in health care organizations but what sticks out the most is financial management. Financial management needs to be taken seriously and everything has to be done accurately because there are consequences if errors occur and the organization cannot function properly. It also helps to see the profit and loss that the organization is having and to see what changes need to be done to fix anything. Four elements in financial management In financial management, there are four elements that are vital to any company and those are planning, organizing and directing, leading, and decision making “…by regularly following the four-step control process, managers can make their department more effective and productive”. Lombardi, D. J., Schermerhorn, J.R., & Kramer, B. (2007.) Planning is important because the manager identifies the steps so that the organizations plans/objectives can be accomplished. Controlling is an important element as well because it makes sure that the plans are followed. The financial manager makes sure that the units/areas of the organization are following the plans that were built. There is a way you can do that and that is to compare reports from earlier times. Organizing and directing helps in financial management because the manager uses the organization to make sure that the plans have been established. The...
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...The customers, health care professionals and assisting organizations are integral part of health care system of the state. Every system has important objectives or goals to deliver heath care to its people. First and foremost goal is accessibility of health care to every individual of the state equally with stated standards with respect to its quality. Another major goal is to be cost effective system for the people of the state. Below listed are important components which are important for health care to function. Finance: People purchasing health protection plans or paying for the health care facilities deliver the required finance to the system for delivering smoothly to people of state. Health Care Services: Providing health care services...
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...Reporting Practices and Ethics In financial management there are four components that include: 1.) planning; 2.) controlling; 3.) directing and organizing; and 4.) making decisions are (jblearning, 2010) tools enabling managers to identify and accomplish objectives, ensure plans are followed, ensure an effective use of resources, and make informed choices (Baker & Baker, 2011). The generally accepted accounting principles are the uniform least possible guidelines to and standards of financial reporting (Office of Financial Management, 2001). General financial ethical standards, determined by the Financial Accounting Standards Board, are standards that are general and determine the way accountants in the United States conduct and format reports (Morley, 2014). Abuse and fraud account for as much as 15 percent in annual expenditures in health care in the United States (Rudman, 2009). Independence, integrity, and objectivity make up the three components of ethics (Gallup, 2014). The four components of financial management are: first.) planning; second.) controlling; third.) directing and organizing; and fourth.) making decisions. In summarizing the components of financial management; in the area of planning the steps are identified by the manager to be taken in accomplishing objectives of the organization. In the area of controlling, the manager ensures areas of the organization are following the established plans. One method utilized is studying current reports comparing...
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...Healthcare Spending HCS/440 July 24th, 2014 Healthcare Spending The national healthcare spending within the United States keeps increasing annually. The overall deficit keeps increasing due to national healthcare expenditures. In 2012, the healthcare deficit was three trillion dollars. Due to services such as medical treatments and health insurance; the healthcare spending will continue to increase. National Healthcare Expenditures In the United States, the overall projections are primarily based on the National Healthcare expenditures. These projections are measured by the form of services or goods provided. Services may include physician care, hospital care, and clinical services rendered. Goods may consist of necessary prescription drugs and medical equipment. The source of funding for the services performed and the required goods may come from Medicare, Medicaid, private insurance, and out-of-pocket expenses ("National Health Expenditure Projections 2012-2022 ", 2012). Health Care Spending in the United States According to recent studies in the United States, the projected health care spending is to increase by almost six percent between by the year 2022. This is actually a percent faster than the Gross Domestic Product (GDP) expected. Researchers thought that the healthcare spending would remain around four percent since the economic recovery was very slow at the time in 2013. There would an increase in cost- sharing requirements for Medicare, Medicaid...
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...Financial Managers and Quality Initiatives in Health Care Post University Tina M Dixons Abstract This paper will discuss the importance of why financial manager should be concerned with quality initiatives in the health care setting. The topic will describe why quality initiatives are a key role in the financial success and failures in healthcare. Delivery of healthcare is synonymous with finance and the task related to quality improvement and quality initiatives that support accuracy in documentation and treatment. There is a strong correlation between providers and finance. Key words: Finance, Quality initiatives, Providers, Patient care. Financial Managers and Quality Initiatives It is clear that if good quality of services, successful outcomes and customer satisfaction are presented in a healthcare setting, then the financial stability may sustain. As financial managers collaborate to achieve health care quality, they know that there are several variable factors that must manifest in order to sustain and earn profits for their organization. Some variables include reduction in medical error, appropriate diagnostics, medical analysis, education programs, staff training, prevention, primary care, financial reimbursements, technological advancements and minimizing waste. Error and Accuracy Medscape reported that “Eight years ago, the Institute of Medicine's (IOM) report To Err is Human revealed that between 44,000 and 98,000 Americans...
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...Financial Planning or Financial Plan is defined as, “a comprehensive evaluation of an investor’s current and future financial state by using currently known variables to predict future cash flows, asset values and withdraw plans” (Investopedia, 2015). Many companies and organizations cannot run without having the proper financial planning, by keeping records up to date, following the Generally Accepted Accounting Principles (GAAP) and general financial ethical standards as well as the four main elements of financial management. Finally, by addressing financial reporting practices and ethical standards within healthcare finance, fraud and abuse can not only be monitored but the integrity and responsibility of that medical clinic or hospital can continue their reputation at a high stance. Fundamentals of Financial Management There are four main elements of financial management; planning, controlling, organizing and decision making. In the planning element, financial managers have to classify the many steps that need to be taken in order to accomplish and complete an organizations objectives. The main purpose of planning comes down to identifying the steps in accomplishing these objectives. When financial managers oversee each area of an organization, making sure they follow the steps that have been established in plans is the controlling element. Organizing includes the financial managers decisions on how to appropriately use the resources of a company to make sure plans...
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...Fiscal Policy Paper Benjamin Schiessl University of Phoenix Eco/360 Principles of Macroeconomics Group PA06BSM03Z Shereef Ellaboudy February 20, 2008 Fiscal 2 One of the key components of the fiscal policy of any administration is how they intend to spend the taxpayers or citizens monies. A major part of the budget each year is allocated to social programs (Health and Welfare). In this paper I will examine democratic candidate Barack Obama’s health care plan and its potential effects on the nation’s economy. Senator Obama proposes a universal healthcare plan which will obviously take an increase in spending to facilitate. The increase is estimated to be approximately 50 to 65 Billion annually when the program is fully phased in. The Obama plan suggests that the initial investments needed to finance and maintain this plan will easily be made by allowing the current Bush tax cuts to expire. This means a tax hike will not be necessary to finance this program. On the face of it, this sounds like a solid plan but let’s take a closer look before we make such conclusions. How will this affect the overall economy? Let’s look at some of the areas that will be affected if you implement such a plan. We have seen that funds to finance this program will come from increased taxes on taxpayers making $250,000 dollars or more annually. The question here is how will this affect the spending of this group? It is debatable whether this will negatively impact the spending of this...
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...Financial Reporting Practices and Ethics in Healthcare Jeanette Jordan 03/07/16 HCS-405 Prof. Adrian Parker Abstract Financial management is a vital part of organizational effectiveness, it is a discipline with a long and respected history. Health care service delivery is a business, and the concept of financial management assists in balancing the inflows and outflows that are a part of the business. The managers within a health care organization will generally have one of three views the financial view, the process view and, the clinical view. Health care managers must of necessity interact with one another. Thus, managers holding different views will be required to work together. So, health care managers who understand health care finance will be able to interpret and negotiate successfully such interactions between and among viewpoints. (Mohamed Refaat, 2016) There are four elements of financial management planning, controlling, organizing and, decision making. In planning the financial manager identifies the steps that must be taken to accomplish the organization's objectives. Thus, the purpose is to identify objectives and then to identify the steps for accomplishing these objectives. In controlling the financial manager makes sure that each area of the organization is following the plans that have been established. In organizing the financial manager decides how to use the resources of the organization to most effectively carry out the plans that have been established...
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...Mercy Nagbe HCS/235 Presentation Professor Nate Garner November 15, 2015 What Is Long-term Care ● Health derives the need for care. ● How long does care last? ● Who will need Long-term care? Long Term Care Ensuring quality care: The decision to put a family member in a long-term care facility, nursing homes or assisted living home can be very difficult, but one of the primary concerns is about whether or not your family member will get loving care and quality care in a safe environment. Residents Rights Respect: Long-term care resident residents are to be treated with dignity and respect. They have the right to select the activities that they would love to participate in. They also have the right to leave the facilities with family or friends after notifying the staff. Restraints: By law it is wrong to use physical chemical restraints on residents except when it is necessary to treat medical symptoms. Who are stakeholders? ● ● ● ● Providers Payers Employers Patients Between patient and employer ● ● ● ● Patients have the expectancy to be offer a wide variety of options for whatever care that can be customized to their special needs. Basic premise is to provide the most options and the least out of pocket cost to consumer. Employers want to maintain their cost and contribution and they want the patient/employee to seek only needed care, and instructions. Patients should seek to reduce their health risk behaviours, i,e. diet, exercise and smoking. Between Providers...
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...Components of a Healing Hospital Sheena E. Williamson Grand Canyon University July 3, 2016 HLT 310V Spirituality in Healthcare Professor Richard Hudock Components of a Healing Hospital The unseen environment is the spiritual aspect of creation. The unseen is where God dwells (Jn 1:18). Three factors are all of the topmost significance in a healing hospital. A healing physical environment, a one model focused on the goal of everyone working together for the same goal of optimal patient wellness and care, then an incorporation of knowledge and technology are all crucial components of a healing hospital. Placing these mechanisms into a hospital can often present a challenge presenting many barriers to be crossed. This author will discuss the components of a healing hospital in relation to spirituality, challenges of creating a healing atmosphere, and biblical aspects of the hospital environment In order to promote a healing environment a physical healing environment must be fostered. Providing a noiseless atmosphere for patients to rest allows for patients body to regenerate plentiful and accelerate the healing progression. This includes promoting quiet time. Most hospitals strive for private rooms for patient privacy and comfort. The overall goal is to decrease stress for the patient that can be fostered in an unorganized environment. Creating a stress free environment for patients, the patient’s families, and healthcare workers stimulates a healing environment...
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...Assignment Agency for Healthcare Research and Quality HCM 4002 Risk Management February 12 , 2014 Introduction “The Agency for Healthcare Research and Quality, (AHRQ) is responsible for producing guidelines for improving the quality of healthcare” [ (Agency for Healthcare Research and Quality (AHRQ), 2014) ]. Mission “AHRQ's mission is to produce evidence to make health care safer, higher quality, more accessible, equitable, and affordable, and to work with the U.S. Department of Health and Human Services (HHS) and other partners to make sure that the evidence is understood and used” [ (Agency for Healthcare Research and Quality (AHRQ) , 2014) ]. Goals AHRQ has four primary goals. First, they aspire to “Improve healthcare quality by accelerating implementation of patient-centered outcomes research (PCOR)”. They hope to be successful in doing so by “developing PCOR methods, training PCOR researchers, and disseminating PCOR findings” [ (Agency for Healthcare Research and Quality (AHRQ) , 2014) ]. In response to the rapid changes in the delivery of healthcare and the impact of The Affordable Healthcare Act, AHRQ is currently attempting to penetrate the primary care practice environment. The Affordable Healthcare Act requires a change in the current system. One goal is to improve healthcare quality and be cost-efficient in delivering services and; in line with doing so, specialty physician practices will be minimal. On the upside of this change...
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...Cases in Healthcare Finance Case 11 Solution CASE 11 SOLUTION (8/3/05) Copyright © 2006 by FACHE BANGOR FAMILY PHYSICIANS Pay for Performance Case Information Type This case is nondirected, in that it does not contain a specific list of questions that students must answer. Rather, the case contains general guidance or concerns expressed by various parties that students should consider when developing their solutions. If you, as the instructor, want to convert this case to a directed case, and hence provide your students with very specific guidance questions, you can copy and make available the applicable questions for this case contained in the Case Questions section of the online Instructor’s Manual. Purpose This case analyzes alternative pay for performance compensation plans for group practice physicians. Several different approaches are used to measure economic (financial) performance. In addition, compensation can be based on both financial and non-economic factors. Students must not only consider the impact of various approaches on compensation amounts, but also consider the issues of fairness and creation of incentives that benefit the practice as a whole. Complexity The case is moderately complex, especially for students who have little actual work experience and hence a limited understanding of “real world” compensation. There is a lot of number crunching, but the model does most of the work. Model Description The model (filename CASE11 for...
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...Accounting Ethics in Healthcare HCS/405 Dr. LaTrina Frazier Accounting Ethics in Healthcare The four goals of good healthcare are to relieve symptoms, cure disease, prolong life and improve quality of life. Access to healthcare has been a perpetual challenge to healthcare providers who must take into account important factors such as equity, efficiency and effectiveness (Maharaj & Paul, Jul 2011, 98) Your customers expect to receive quality medical care at your medical clinics and/or hospitals. They also expect to receive fair and ethical treatment from the staff. This include the accurate and timely billing for services. The non-clinical team is responsible for coding and billing the products and services provided to our customer during their visit. This back office process is seen as part of the overall service provided by your facility. At the end of the day a health care businesses first priority is to provide the best quality service possible to its patients. Keeping the welfare of your patients as the priority leads to good decisions, this is definitely true in any healthcare business. With all of the current financial challenges in our economy, that has reduced reimbursements and add to this the fears of the healthcare reforms. Hospitals are being challenged on all sides, and they need to be able to count on having ethical business partners and employees to help them continue to deliver the highest quality care. As employees in...
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...includes setting certain specifications on how work is done and how to maintain confidentiality with private sensitive information. This aspect of financial management also prevents breaching the elements defined in HIPPA. Planning is essential because by the very nature of healthcare it is important to plan for those times when payments from insurance and government agencies are received and times when payments may not be as forthcoming. Also as healthcare is an ever changing industry it is important to plan for those changes. Organizing is integral to healthcare in order to maintain or reduce costs and give the best service to patients and others who are relying on results from the organization in order to perform their jobs. Decision making is the backbone of any organization but particularly healthcare. Ideas and changes must be weighed, for example what EHR program to choose, how to implement any changes and how to enforce regulations which must be followed in the healthcare industries. Without these four important components financial management would not be possible. Along with the four components mentioned above there are other financial guidelines which must be followed to have a sound healthcare organization. These guidelines are known as “Generally Accepted Accounting Principles or GAAP”. In addition to GAAP there are...
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