...Ratio Computation HCS 405, University of Phoenix November 5, 2012 Diana Schilling Eight Basic Ratio’s Used in Health Care Liquidity Ratios 1. Current Ratio: Current Assets/Current Liabilities UNAUDITED: 2009: $128,867/$23,807 = 5.41 2008: $130,026/$8,380 = 15.52 AUDITED: 2009: $127,867/$23,807 = 5.37 2008: $130,026/$8,380 = 15.52 2. Quick Ratio: Cash & Cash Equivalents + Net Receivables/Current Liabilities UNAUDITED: 2009: $22,995 + ($59,787-$10,757)/$23,807 = 3.03 2008: $41,851 + ($37,666-$6,777)/$8,380 = 8.68 AUDITED: 2009: $22,995 + ($58,787-$11,757)/$23,807 = 2.94 2008: $41,851 + ($37,666-$7,533)/$8,380 = 8.59 FINDINGS: I do not disagree with the CEO’s report to the Board. The unaudited and audited reports are very similar in their ratios. The audited reports show more validity to the numbers and should be looked at more than the unaudited reports. I believe that the next year and next five years can be based on either ratio and the board can get the budget for the next few years pretty close to what they need to be. 3. DCOH: Unrestricted Cash & Cash Equivalent/(Cash Operation Expenses/365) UNAUDITED: 2009: $22,995/($462,293/365) = 18.2 2008: $41,851/($437,424/365) = 34.9 4. Days Receivable: Net Receivable/(Net Credit Revenue/365) UNAUDITED: 2009: $59,878/($462,982/365) = 47.13 2008: $37,666/($421,314/365) = 32.63 Solvency Ratios 5. DSCR: Change in Unrestricted Net Assets + Interest, Depreciation, Amortization/Maximum...
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...Affordable health care is a part of the “American dream.” This dream is slowly turning into a nightmare with “42.6 million Americans uninsured including 10 million children” (govspot.com, 2012). The needs of the current health care system need to be addressed and changes need to be made because many Americans are also underinsured. The issues that will be discussed are the level of current nation health care expenditures, whether spending is too much or not enough, where the nation should add or not, and why, and how the public’s health care needs are paid for and financed by various payers. The level of current nation health care expenditures is currently at $2.1 trillion. This translated into $7,026 per person and 16% of the Gross Domestic Product (GDP) (ajronline.org, 2008, pg. 1). 31% of this is for hospital spending, which is above the nationa health care expenditures. 5.9% for physician expenditures, which is currently lower than the overall expenditure rate due larglely to the 2% medicare fee for physicians. 19% for overall Medicare part D which caused a spike in prescription drugs. 8.8% in admisistravie fees, which grew faster than the overall rate because of the of the high number of members who joined the Medicare Advantage plan. Medicaid for the first time in history shrank because of the high number of people who enrolled in Medicare Part D. Heath care spending is to high and continues to grow, which means the health care growth rates continue to exceed...
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...University of Phoenix Material Simulation Review Complete a simulation and then write a paper that analyzes the decisions you made. You are in charge of fictitious health care organization facing financial difficulties. In the simulation, you will complete the following tasks: Bridge a working capital shortage. Evaluate funding options for acquiring medical equipment. Evaluate funding options for capital expansion. Part I below explains how to successfully complete the simulation and prepare for writing the paper. Part II explains the paper requirements. Part I Complete the following tasks before beginning the simulation: Save this document to your desktop. You will need to reference it as you complete the simulation. Print this document before beginning the simulation for easy reference. Review the paper requirements listed in Part II and have an extra sheet of paper ready for taking notes as you complete the simulation. Complete the Health Care Financial Accounting simulation. The simulation can be access by clicking on the ‘Simulation’ tab under the ‘Healthcare Accounting – Financial Indicators simulation’. To get the most out of the simulation, consider the following tips: The minimize icon ( ), shown in the upper-right side of the simulation may not function on your computer. Once you begin the simulation, you may not be able to access your desktop or other applications without ending the simulation. To end the simulation, click...
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...Economic Terms and Health Care History Amber Rainwater HCS/440 Economics: The History of Health Care February 26, 2012 Health Care History Throughout the history of the United States, the economics of the health care system has experienced many changes. There are many factors to consider that has been the drive behind many of the changes within the health care system. Medical and surgical technologies are some factors that relate to the changes in health care. Besides these factors, allocating sources to fund health care services has always been the most critical factor. One might consider the economic term supply and demand when looking at the history of health care economics and the primary funding source. Health care funding has always been a challenge and will continue to be a barrier due to the lack of resources within our nation. The primary source for funding medical services has faced many changes throughout U.S. history. The need to utilize medical services has increased, which led to the implementation of health care insurance. This came into effect due to the growing demand for health care services at a lower outer pocket expense. The challenge of funding medical services has always been a struggle. It was President Harry Truman that first approach Congress to enact a national insurance program back in 1945 After many failed attempts, President Johnson finally signed into law the Medicare and Medicaid program on July 30, 1965. Medicare is a government...
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...The Reforming of Health Care as it Pertains to Prescription Drugs in the United States HCS/440 08/05/2013 Professor Michele Burka, MBA The Reforming of Health Care as it Pertains to Prescription Drugs in the United States The Problem America stands on the precipice of a new health epidemic; prescription drugs are the new face of concern for the average American citizen.; cost, shortages, and abuse can often be found on any given day in print, online, or more commonly, social networking sites. As technology continues to advance, so too does the ability to procure medications for 90% of what the body needs to maintain optimal health. In addition to this, agenda pushing doctors, contractual obligations to pharmaceutical manufacturers, and drug reps have created a health care atmosphere where it is almost impossible to walk into a physician’s office for an annual health screening without leaving with a handful of questionable ‘needed’ prescriptions. Doctors are prescribing more medications than ever before seen. This is in fact creating more prescription related abuse. With this new availability comes the responsibility of ensuring those receiving are adequately informed of consequences, and potential addiction issues. All too often, a consumer seeks advice from a healthcare provider and does not self-educate on the medication received. Yes, medical staff, especially the prescribing individual has a personal and professional responsibility to the consumer to inform...
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...Economic Issues Simulation HCS/440 July 9, 2014 Jonathan Foskett Economic Issues Simulation Constructlt is a company, which currently employs 1,000 individuals, 550 men and 450 women in the age group of 26-42. Approximately 60% of the group is married. The group is willing to pay up to $4,000 dollars per individual for their annual premium. Castor Collins must weigh the many considerations when deciding to insure Constructlt, the premiums employees are willing to pay, risks of providing a certain plan or service, and the expected utilization (University of Phoenix, 2014). In order to maintain a profit Castor Collins needs to take all of these aspects into consideration. Thirty-two percent of the individuals at Constructlt have a working profile, which involves significant physical activity, and only 25% have a working profile with moderate activity. When determining which insurance plan is best for Constructlt it is best to look at the health risk factors of the group. Thirty-eight percent of the group, which breaks down to 170 men and 210 women, has no major health risks. Conversely, 18% of the workers, 10% men and 8% of the women are smokers. The principal health risk factor affecting the group is obesity. Of the Constructlt group obesity affects 39% of the group. Hence, increasing the risk for obesity related diseases like high blood pressure, heart disease, and diabetes. Due to the health risk factors utilization will increase with...
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...By: Amanda Messler-Layman HCS 440 Health Care Spending. Health care is a huge added player in the hat rides the Current national expenditure levels in the United States has more than tripled in the past decade, while the amount of Americans that can afford private health insurance has dropped and the number of people relying on Medicaid and Medicare has increased with the aging baby boomer generation. Medicaid and Medicare being two of the governments most used medical insurances, the spending in health care has grown faster than the economy can bear. The Medicare physician reimbursement system provides a kind of “public good” for other insurance programs; that is, it offers a universally understood and practiced standard fee schedule that insurance companies can adopt or easily modify by changing the dollar conversion factor separating certain categories. Medicaid, BlueCross, and commercial insurance contracts that cover the 87 percent of the population under age 65 often base their payments on a modified form of the Medicare RBRVS or use Medicare payment levels as a benchmark (Getzen & Moore, 2007). Spending for health care uses a greater part of the economies revenue: the national studies that have been done in the past decade depict that many citizens of the United States will have to make increasingly more disconcerting decisions in daily life and ability to obtain and afford adequate health care insurance for themselves and their families. While...
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...The High Cost of Healing Barbara Bauman HCS/440 April 21, 2014 Dr. David Moody The High Cost of Healing The cost of health care has been at the forefront of politics for years. It is one of the most talked about topics not just in political venues but also country wide. Every American has an opinion on how our economy can be fixed and they are passionate about health care reform. The price of insurance alone causes many Americans to not have coverage. For those that can afford coverage, the struggle to pay co pays is immensely crippling their bank accounts. Of these burdens on Americans today, the most frightening fact lies in the cost of prescription medications. The price for prescription medications is quickly becoming one of the largest medical expense burdens on Americans today. Many Americans are cutting expenses in other areas of their lives such as groceries and entertainment in order to obtain the pills that directly affect their health. Some people do not have prescription medication coverage in their policies and have to pay 100% out of pocket. The demand of certain drugs is causing and allowing some companies to greatly increase price ("Consumer Reports", 2006-2014). Skipping a bill such as a mortgage can cause many issues for a person but can usually find resolve with time. However, many people are taking other dangerous steps such as not following up with doctors or specialists and even electing to not have procedures performed because...
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...WEEK 2 DQS Dq 1 How might a lifestyle choice affect the demand for health care services? The health status of every individual is relative to environmental and heredity factors. In general, the average individual doesn’t have control over their genetic makeup; however, there behavioral lifestyle is and it influences their overall quality of life. Environmental factors are things that an individual can always alter to improve their health. For example, changes in their diet, physical maintenance, and stress. The decisions from the initial case deal with treatment; further along there is areas of discipline, education, responsibility, and adopted healthy lifestyles. With this in mind, the wrong decision will equally influence health care supply and demand significantly. For example, the increasing rate of diabetes in the country is a result of either decision. Type 1 diabetes is a hereditary form of the virus caused from the digestive system not processing insulin. However, type 2 diabetes is caused by environment influences which cause the pancreas to insufficiently produce insulin. Type 2 diabetes is usually caused by obesity. In fact, I researched this information before for a previous class and its been proven that 95% of all diabetes infected individuals have type 2 diabetes. The overall number of individuals with diabetes make up 30% of the U.S. population. The number of individuals with the disease began to spike in the mid 1990’s and the demographic equally expands...
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...Health Care Spending Paper Becky Perez HCS/440 Michele Burka March 6, 2012 Affordable health care is a part of the “American dream.” This dream is slowly turning into a nightmare with “42.6 million Americans uninsured including 10 million children” (govspot.com, 2012). The needs of the current health care system need to be addressed and changes need to be made because many Americans are also underinsured. The issues that will be discussed are the level of current nation health care expenditures, whether spending is too much or not enough, where the nation should add or not, and why, and how the public’s health care needs are paid for and financed by various payers. The level of current nation health care expenditures is currently at $2.1 trillion. This translated into $7,026 per person and 16% of the Gross Domestic Product (GDP) (ajronline.org, 2008, pg. 1). 31% of this is for hospital spending, which is above the nationa health care expenditures. 5.9% for physician expenditures, which is currently lower than the overall expenditure rate due larglely to the 2% medicare fee for physicians. 19% for overall Medicare part D which caused a spike in prescription drugs. 8.8% in admisistravie fees, which grew faster than the overall rate because of the of the high number of members who joined the Medicare Advantage plan. Medicaid for the first time in history shrank because of the high number of people who enrolled in Medicare Part D. Heath care spending is to high and...
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...Constructit Insurance Selection Economics: The Financing of Health Care HCS 440 December 27, 2013 Constructit Insurance Selection Companies that are considering offering insurance to employees must make some decisions on plans, costs to both the business and the employee, and services provided. The insurance company offering the insurance looks at the level of coverage they are willing to provide for the services they will cover and to make a profit. This becomes a delicate balance of offering quality insurance coverage while making a profit. Castor Collins is evaluating the best selection based on the coverage requested by the separate companies and the amount the companies are willing to pay per employee. This student will analyze the data put together through the simulation assignment as the Vice President of Strategy and Financial Planning at Castor Collins with the information gained about both companies and advice from other professionals at Castor Collins regarding the chosen business, employee demographics, health concerns, premiums, and plan selection. Company Selection Approaching Castor Collins for insurance are Constructit and E-Editors. Both companies are seeking insurance plans for their employees, but both companies have different amounts the employees are able to pay towards an insurance plan. Constructit has 1,000 employees and are willing to pay $4,000 per employee towards a maximum annual premium. E-Editors have 1,600 employees and are willing...
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...Economic Issues Simulation Paper Name HCS/440 Economics: The Financing of Health Care February 7, 2011 Instructor Economic Issues Simulation Paper The Castor Collins health plan is a health maintenance program (HMO) that was found in 1999. The company provides health insurance coverage through a system that involves a network of physicians and hospitals. Castor Collins Heath Plan uses the capitation model to fund its large distributed group of physicians and health care organizations. Currently, Castor Collins provides health care coverage to 100,000 subscribers and would like to increase their enrollees. It is the responsibility of the Vice President along with his most trusted advisers, Helen Feuerman, Chief Financial Officer, Jonathan Wilkes, Chief Medical Officer, and Adam Hunter, Executive Vice President, Planning and Development, to reach out to new clients; two in particular, E-Editors and Constructit. E-Editors Castor Collins has a major company that is looking for health insurance coverage for their employees. The company E-Editors employs 1,600 individuals, 760 males and 840 females. The employee’s ages range from 35-54. Most of the employees with E-Editors are married so they will need to provide an affordable health care plan for their families. Looking at the kind of work involved for most of the employee’s, Castor Collins found that many of the individuals have a sedentary position. In fact, ninety-five percent of the employees at E-Editors have a position...
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...Economic Issues Simulation Paper Introduction The Economic Issues Simulation Paper is about Castor Health Plans. This health plan was founded in 1999 as a Regional HMO in the state of Pantome. The main purpose of Health Maintenance Organizations (HMOs) is to provide health care services and health insurance to enrollees through a statewide network of hospitals and physicians. The HMOs complete this by using a capitation model in which it pays its large network of health providers. Caster Health plan has thousands of enrollees throughout the state and is looking towards increasing the amount. As a representative for the Castor my responsibilities is to maximize profit and minimize risk for the company. Other responsibilities that I would need to help with are including plenty of interaction with any new clients and formulating health plans in that would suit the client’s needs, on top of all that this would also include pricing plans and setting insurance premiums. It’s never an easy job making any sort of financial Making any types of financial and economic decisions; making decisions for a business is a lot harder because one has to realize what is and will do best in order for the business to make profits and to grow. Castor will need to choose between two types of companies it will want to help cover with their health plan. The two companies that have been put in front of their health plan company are that of Constructit or E-editor. The simulation has a couple...
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...The Economic Impact on HMOs Katria Anderson HCS/440 ECONOMICS: THE FINANCING OF HEALTH CARE November 18, 2013 Jeanne Hutsberger Major The Economic Impact on HMOs Health care insurance has always been a hot commodity for people in the United States. Over the course of the past decade the demand has become even greater. Health care reform has implemented laws that state the employers must offer health insurance. Because of this companies are looking for ways they can offer insurance with the lowest possible impact on their administrative budget. This is no easy task, but there are insurance companies that offer plans that will work for all parties involved. In order to offer companies plans that will suit their employees and not break the bank close attention to detail must be paid to the company’s overall state of health. An in-depth analysis is conducted and health conditions are looked at with much scrutiny. Although it appears to be much to go through for health insurance coverage, it is an absolute necessity. “Insurers have to determine a premium price based on risk factors balanced over the entire group, using general information on members of the group, such as age or gender” (National Conference of State Legislatures, 2013). Castor Collins Health Plans has taken on the task of deciding on offering coverage to one of two businesses. The businesses are Constructit...
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...Health Care Spending Economics: The Financing of Health Care HCS 440 December 15, 2013 Health Care Spending The American Dream is described by The Free Dictionary as, “An American ideal of a happy and successful life to which all may aspire” ("Definition," 2013, p. 1) yet this can mean different things to different people. To this student it means happiness, prosperity, health, freedom, and the ability to makes choices according to what this student believes in. For other people, the American Dream will mean similar and probably different things. To many Americans the ability to have health care is a part of the American Dream. Obtaining health care insurance and being able to choose the insurance they can afford is part of their own American Dream. This choice usually comes through their employer or through being self-employed and choosing the appropriate health care insurance. This piece of the American Dream is becoming increasingly expensive and unobtainable. This student will explore current national health care expenditures, is there is too much spent or not enough if cuts need to be made, how health care needs are paid for, and a forecast of the economic needs of the health care system. The level of the current national health care expenditures Health care costs continue to increase. According to the Centers for Medicare and Medicaid Services (CMS), “U.S. health care spending reached $2.7 trillion in 2011, or $8,680 per person. Health spending grew 3.9...
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