...AMSPAR Diploma In Primary Care Management Unit 602 Financial Management And Budgeting In a Primary Care And Health Environment By Graham Morrison Task 1 1a. Evaluate the information and processes required to be able to set a budget, which supports the organisation's business goals. Discuss how you would use them to prepare, formulate and monitor a budget. The objectives of budget preparation are shown in the table below. Objective | Comment | Planning | Compelling managers to plan is probably the most important feature of a budgetary planning and control system. Planning forces management to look ahead, to set out detailed plans for achieving targets for each department and operation and ideally each manager and to anticipate problems. It thus prevents management relying on ad-hoc or uncoordinated planning which may be detrimental to the performance of the organisation. It also helps managers to foresee potential threats or opportunities, so that they make take action now to avoid or minimise the effects or threats and to take full advantage of the opportunities. | Responsibility | Objectives are set for the organisation as a whole, and for individual departments and operations within the organisation. Quantified expressions of these objectives are then drawn up as targets to be achieved within the timescale of the budget plan. Budgetary planning and...
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... SANDRA DI PIETRO Today’s health care environment is in a state of flux. Many health care organizations are working hard to implement and deal with the new provisions established in the Affordable Care Act of 2010. The three financial environments must adjust the way they deliver health care services to accommodate these new provisions. For-profit organizations, not-for-profit organizations, and government organizations have to change many of their financial systems to operate in today’s health care industry. Throughout this paper I will explore three organizations from these different financial environments. Universal Health Services Incorporated is a for-profit health care organization that will be explored in detail. The Mayo clinic is a not-for-profit health care organization that will be discussed. The last health care organization is from the government environment and I will explore the U.S Department of Veteran Affairs. All of these health care organizations have different financial structures which will be explained throughout this paper. The policies and financial management of each organization will be explored to show how each financial environment is reflected within their respective organizations. Finally, I will describe why effective financial management is more difficult in health care than any other industry. The for-profit health care organization I will discuss is Universal Health Services incorporated. This health care organization is a hospital...
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...There are many different health care organizations that offer different medical services. Most of the health care organizations are profit, government, or nonprofit organizations. Most health care organization consist of hospitals, home and nursing care, and health care agencies. As for the health care insurance and hospitals they too can be profit, nonprofit, and most organization and figure out and focus on making a profit or not. For profit, nonprofit, and government each have different financial environments. The financial environment are based upon the organization and its structures. The financial structures of the organizations affect accounting practices and other practices that go along with the financial environment. The purpose of this paper is to give a description of the financial structures of nonprofit, profit, government environments while stating the policies, practices of each environment. QUESTION 1 For profit organizations they are there to serve the public. For profit organizations are working with others to make a profit to meet their needs and objectives. For profit organization work to make revenue so they invest and they need to make a certain amount of profit to get and keep the things they need. They have to watch their balance and revenue and they are required to pay taxes that make effect there financial environment. Non for profit organizations are not required to make a profit. Not for profit organizations help and offer low cost to patients. In...
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...Comparative Summary In the United States, health care is delivered by a complex mixture of government, not-for-profit, and for-profit financial structures. These three financial structures coexist and compete with one another. The financial environment of an organization consists of three major components the financial managers, investors and financial markets. Health care services are provided in a regulatory environment that is both different and more comprehensive than that affecting almost any other industry. In order to fully utilize all financial resources it is important that managers understand the organizations financial structure. During this paper we will compare the financial environment of for-profit Hospital name, not-for-profit San Antonio community hospitals and the San Antonio Military Medical Center. We will also compare the financial structure, polices unique to each financial environment and their management practices. Finally we will explain why financial management is more difficult in health care compared to other organizations. Financial Structures The government financial structure makes up almost 25 percent of the health care organizations in the United States. These hospitals are divided into federal and public hospitals. The San Antonio Military Medical Center (SAMMC) is one of the federal hospitals in the United States. The San Antonio Military Medical Center is considered the Army’s most modernized health care organization. This organization is...
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...Comparative Summary University of Phoenix HCS/577 Charlotte Igo July 30, 2012 The Health care financial environment is the most common for- profit, not-for-profit, and also the government funding. In this paper, it will be identified that one entity of these health care financial environments. Also it will describe the financial structure of the financial environment. Along with identifying the policies unique to each of the financial environment, and also to identify the financial management practices prevalent in the financial environment. Then it will be explained why the effective financial management is more difficult in health care than in other industries. First we will talk about is the Health Management Associates, Inc. that was founded in 1977. The Health Management Associates was founded to own, also leased and then managed the hospitals throughout the United States. As of the HMA, they operate about fifty nine hospitals in fifteen states with approximately eighty eight hundred licensed beds. Company employs around thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians. HMA is a for profit organization, with that the profit organization is with the three key features of investor-owned corporations. The owners aka known as the stockholders of the business are well...
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...Comparative Summary The health care industry in the United States is big business in proportion to gross domestic product (GDP). Americans spend approximately two trillion dollars on health related expenditures (Baker, & Baker, 2013). The industry is expected to experience positive growth over the next two decades (Baker, & Baker, 2013). Coupled with this growth is the pressing need to control costs. This is especially so in government funded reimbursement programs, such as Medicaid and Medicare (Gapenski, (2008). As the American population ages, the demand for increasingly efficient health care organizations is essential to a positive outcome for the industry. Health care is one of the world’s most complex undertakings, there are innumerable processes at every level. For-profit Financial Environment For-profit organizations must make a return on investments and services rendered. They must meet their obligations and must satisfy private investors and shareholders (Finkler, & Ward, 2006). With a return on investment being one of the top priorities, motivation can be fostered to provide high efficiency with a superior product. In this case, a superior service. Mountain Star Healthcare Mountain Star facilities are owned and operated by the larger parent company Hospital Corporation of America (HCA). This private company began trading shares in the stock exchange in 2011 (Hospital Corporation of America, 2013). Their goal is to approach service expansions with the patient put...
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...& Ward (2006), “health care is an enormous part of the US economy, representing 17% of all personal consumption expenditures annually” (p. 7). The health care industry has multiple components, diverse types of providers, and many different types of health care organizations playing an integral part in the delivery of health care. Health care is provided by different health care financial environment namely for-profit organization (FP), not-for-profit organizations (NFP), and governmental organizations (Finkler & Ward, 2006). This paper will identify one entity from each health care financial environment identified from the previous week’s worksheet and will describe the financial structure of each financial environment. This paper will also address the policies that make this financial environment unique and identify which financial management practices are prevalent in the financial environment. This paper will also explain why effective financial management is more difficult in health care than in other industries. Entities FP, NFP, and government facilities exist throughout the country. This paper identifies the first entity FP healthcare organization JFK Medical Center. The second entity is Naples Community Hospital (NCH), a NFP healthcare organization, and the third entity is the Veterans Administration, a government funded facility. JFK Medical Center is a 460-bed acute care medical/ surgical hospital specializing in cardiovascular care, oncology services...
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...United States health care system have many organizations that are called entity which have an effect on people daily living and survivor in life. I will discuss in this paper the entity that I chose from the list of each health care financial environment and described in the Financial Environments Worksheet. I will address and compare the environment that I selected in week one assignment. I will describe the organizations financial structure. I will explain which unique policy to the financial environment that I selected from week one assignment. I will discuss financial management practices that are prevalent in the financial environment. I will in this paper discuss what are the effective financial management that is more difficult in health care than in other industries. Describe the financial structure. The mission of the Department of Veterans Affairs is a government entity that serves veterans of the United States and their dependents, and beneficiaries with compassion and dignity and veterans principal advocate to ensure they receive social support, benefits, medical care, benefits, and lasting memorials. (va.gov, 2016). Department of veterans' affairs financial structure consists of consolidated financial structure consolidated balance sheets that are base dollars in the millions. The assets are kept on this sheet with treasury fund balance. The financial statement is kept up on a yearly basic The balance statement consists of Investments, The financial statement...
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...Financial Environment HCS 577 July-Monday 14th, 2014 Instructor Crystal Chilman Financial Environment Financial environments in the health care industry provide a vital part in the service, quality, and care. Each health care organization fits differently within the environment. Financial management of each organization is needed for external and internal operations and financial status. The provision of health care services is dominated by not-for-profit (NFP) organizations, for-profit (FP), and governmental, (Gapenski, 2008). The job of finance in health services organizations is to plan, acquire, and utilize resources to maximize the efficiency and value of his or her industry. These health care organizations will have similarities and differences between them. Each organization will receive him or her funding from different sources. These same organizations have differences in who makes the financial decisions. The stakeholders of each organization will be varied or none at all. This paper will examine and discuss these similarities and differences. This paper will provide three examples of each FP, NFP, and government. Examples of For Profit Organizations (FP) 1. St. John’s Health System: Tulsa, Oklahoma 2. Oklahoma University Medical Center: Oklahoma City, Oklahoma 3. Hillcrest Medical Center: Tulsa, Oklahoma Examples of Not-For-Profit Organizations (NFP) 1. Integris Health: Oklahoma City, Oklahoma 2. Jane Phillips Medical Center:...
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...quality health care services, the entities also are very different in many ways. In health care environments that are available for patients carry many financial requirements. The health care financial environment is the most common for-profit, non-profit and also the government. This paper will give a description of the financial structure is of each environment while looking at the policies are unique to each of the environments. This will be done while also looking at the dominant financial management practices are prevalent within the financial environments and why it is that effective financial management is so difficult inside the healthcare industry as opposed to other industries. Not for profit financial environment Not for profit financial environment can simply be identified by their name and that they have a no profit purpose. A prime example of a not for profit organization is St. Mary’s Hospital located in Wisconsin Serving South Central Wisconsin since 1912, St. Mary's Hospital offers a wide variety of health and wellness services ("St. Mary's Hospital", 2011). St. Mary's offers a full range of inpatient and outpatient treatment and diagnostic services in primary care and nearly all specialties. However, dealing with the financial structure of a not for profit organization, there is no ownership interest that can be transferred. Keeping this fact in mind, the most logical accounting for this type of financial environment...
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...quality health care services, the entities also are very different in many ways. In health care environments that are available for patients carry many financial requirements. The health care financial environment is the most common for-profit, non-profit and also the government. This paper will give a description of the financial structure is of each environment while looking at the policies are unique to each of the environments. This will be done while also looking at the dominant financial management practices are prevalent within the financial environments and why it is that effective financial management is so difficult inside the healthcare industry as opposed to other industries. Not for profit financial environment Not for profit financial environment can simply be identified by their name and that they have a no profit purpose. A prime example of a not for profit organization is St. Mary’s Hospital located in Wisconsin Serving South Central Wisconsin since 1912, St. Mary's Hospital offers a wide variety of health and wellness services ("St. Mary's Hospital", 2011). St. Mary's offers a full range of inpatient and outpatient treatment and diagnostic services in primary care and nearly all specialties. However, dealing with the financial structure of a not for profit organization, there is no ownership interest that can be transferred. Keeping this fact in mind, the most logical accounting for this type of financial environment...
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...Comparative Summary HCS/577 July 28, 2014 Comparative Summary Introduction The financial environment of the different types of health care entities is defined by the classification of ownership. The three categories of ownership are for-profit, not-for-profit, and government owned. In the following paragraphs, I will identify one entity from each of the three categories of ownership and describe the financial structure in their financial environment. I will identify the policies unique to each financial environment as well as financial management practices prevalent in the financial environment. I will also explain why effective financial management is more difficult in health care than in other industries. Entities Piedmont Medical Center is a for-profit acute care hospital located in Rock Hill, South Carolina. It is an entity with the Tenet Healthcare Corporation that offers a broad range of surgical and diagnostic services that include advanced heart and stroke care, women and children services, and a 24-hour emergency room. It has received recognition for its cardiac care, cancer care, diabetes management, orthopedic care, stroke care, and surgical care. (Piedmont Medical Center, 2014). Greenville Memorial Hospital is a not-for-profit acute care hospital also located in Greenville, South Carolina. It is an academic teaching hospital with a 24-hour emergency room that provides inpatient and outpatient services for the immediate community as well as a referral center...
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...Three different financial environments exist within healthcare organizations. The three financial environments of healthcare organizations are for-profit, not-for-profit and governmental. The characteristics and services the organization provides determine the type of financial environment it is. This paper will describe each of the environments as well as discuss the policies, structure, and financial management of each. This paper will also attempt to explain why financial management is more difficult in healthcare organizations than in any other businesses. Similarities of Financial Environments While many differences exist among each financial environment, they are also similar in many ways as well. Each organization whether classified as for-profit, not-for-profit, or government has a mission and vision statement that defines the organization’s strategic plans. The mission and vision statement reminds the staff of the long-term goals and ensures they understood what is required to meet the healthcare demands of the public. Financial managers must understand the tax laws that are associated with each type of organization before any decisions regarding financing are made. For-profit (FP), not-for-profit (NP), and governmental environments have stakeholders who have a financial interest in the organization. Organizations depend on profits to invest in new equipment, supplies, and services. Differences between Environments Not-for-profit Financial Environment According to...
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...Financial Environment Worksheet LaKisha Carter University Of Phoenix HCS/ 577 Michelle Gomillion November 18, 2013 Financial Environment Worksheet Financial Environments Worksheet Identify three examples of entities with for-profit, not-for-profit, and government financial environments in the health care industry. Compare the similarities and differences between the for-profit, not-for-profit, and government financial environments. | |For-Profit |Not-for-Profit |Government | |Exampl|1.Tenet Health Care |1. American Cancer Association |1. Veterans Affair | |es |2. Blue Cross/ Blue Shield |2. Kaiser Permanente |2.Mayo Clinic | | |3. All Scripts Healthcare Solutions |3.Catholic Healthcare West |3. Los County Department of | | | | |Health Services | |Simila|Generates revenue through daily |Engages in hybrid arrangements, |Same exemptions as not for | |rities|operation |joint ventures and alliances |profits | | | | |Operates under the same health | | |Employees staff with the same | |regulations | | |training and ethical...
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...In the health care industry there are different types program sector organizations, which has its own uniqueness. The different sectors of health care are divided amongst the for-profit, non-profit, and government organizations because they all have a common goal but the financial aspect is the same when it comes to providing care to patients. Within the three types of organization types, the financial need is collected and reported differently due to the organization common goal, financial environment and community outlook. In my research, to give a clearer picture I have chosen an organization that represents each health care sectors environment and they are: Park Plaza Hospital a for-profit organization, American Diabetes Association (ADA) a not-for-profit organization, and U.S. Department of Veterans Affairs as a government organization. In this paper, I will use these organizations to show comparison the structure of each financial environment, the uniqueness of each environment and the prevalent practices of each organization in their financial environment. Collectively by identifying this in each entity will explain why effective financial management is more difficult in health care than in other industries. Financial Structure Many organizations based on the need and the common goal has different financial structures. According to Investopedia (2013), the definition of a financial structure is “a mixture that directly affects the risk and values of a business or organization”...
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