...paper analyzes the strategies and recommendations to improve the financial performance of Middlefield Hospital. The problem started when the chief financial officer (CFO) indicated that the financial performance of the hospital has been deteriorating over the last 6 months. Hospitals throughout the world are operating on tight budgets.Therefore; operational managers must find ways to reduce cost and “manage productivity across all areas and job categories” (Langabeer, 2008, p. 129). There are many factors contributed to this problem: The hospital is exceeding its budget, the new facility across town has continued to cut into Middlefield’s market share by admitting more patients and finally, the number of admissions to the hospital is declining each month and more uninsured patients are seeking services at the facility. The hospital has to change its strategies in order to improve its overall financial performance. These strategies include (1) spending on accounting systems to cut costs, increasing the accounts receivable collections, or increase legitimacy with stakeholders and donors; (2) improving efficiency through professional administration; (3) spending on advertising to increase revenues through increased market share and premium prices; and (4) offsetting patient care losses with substantial net income from sources not directly connected to patient care. After my convention with the Middlefield Hospital management team, we were able to identify the core facts that my...
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...Financial Accounting from a Cardiac Hospital If I were in a management position and had to create a working strategy in order for my company to gain strength, I would create a plan involving three phases: capital shortage, evaluation of the funding options for medical equipment, and the evaluation for capitol expansion. I would then run the necessary financial reports, analyze all the collected data, and then decide the best strategy for our improvement. Financial gain is important to the company, however budgeting is a must. Capital shortage, also known as cost cutting, is the first phase of rebuilding when it comes to a facility on the brink of foreclosure. I was asked to choose two areas that in my opinion, would offer the best financial gain for the hospital. The options on the table where downsizing my staff, reducing their allowed benefits, reducing the agency staff, changing the skill mix, or reducing the length of stay that a patient is offered. After careful consideration, the two choices were the reduction of staff benefits and the reduction of agency staff that is brought into the facility. Along with the forced cuts, I was also asked to choose a loan option that would keep the doors open. Comparing the two loan options side by side, I felt that the second option would have been the best for my hospital. It was at a lower percentage rate of 9%, the monthly installment was not as high as it would have been if I had gone with loan option number one, and the closing...
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...Financial Data Analysis for Patton Fuller Community Hospital Bobbie Griffin HCS/577 April 16, 2012 Crystal Chilman University of Phoenix Patton Fuller Community Hospital This paper will analyze the for-profit organization, Patton Fuller Community Hospital, financial data and determine what happened to with the $1 million that Abigail left to the hospital after she passed. Patton Fuller is very dedicated into providing excellent services to their patients. This community hospital is owned by a group of practicing physicians with the aim of providing quality care to around 600 plus patients in a complete service setting. Finkler and Ward mentioned that all health care organizationought to demonstrate signs of revenue in order to obtain newer technology and be able to be compete with other organizations (Finkler & Ward, 2006). The community hospital provided a financial report also known as financial audit. Gapenski stated that a monetary report show the monetary account of an organization from beginning to end, a cash flow statement, income statement and the balance sheet (Gapenski, 2008). This statement identifies the financial stability of the organization and includes but not limited to the cash flow statements, income statement, and the balance sheet. The organization’s financial reports show a considerable differentiation between 2008 and 2009. Based on the examination performed for Patton Fuller Community Hospital...
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... Baptist Hospital of Miami is currently analyzing the possibility of developing risk management strategies that will ensure to meet all needs or the organization related to quality management. Every plan needs to be approved by every member of the board of directors. The purpose of the Clinical Risk Management Plan is to support the vision and mission of Baptist Hospital of Miami as it pertains to risks associated with the safety of employees, patients, visitors, volunteer, staff, third parties; also operational risks and property risks. The risk management plan will basically guide the process of development and implementation of a risk management program. The risk management promotes the philosophy of Baptist Hospital of Miami that the risk management and patient safety is responsibility of members of the organization and team cooperation is essential for an effective and efficient functioning. Baptist Hospital of Miami believes that organizational errors should be addressed through the implementation of evidence-based practices, constructive feedback, and learning from error analysis. Clinical errors should be addressed by using the following: • Proper report and analysis of errors related to medical or patient care. • Proactive identification of hazards and unsafe conditions. • Open discussions of mistakes. • Open acceptance of system improvements. The Risk Management Plan at Baptist Hospital of Miami promotes...
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...Community Hospital Ratio Computation 2009 and 2008 This paper will show the ratio computations to Patton-Fuller Community Hospital. From these computations, taken from the Unaudited and Audited Reports from 2009 and 2008, Team E will address significant changes, if any occurred, and address what Patton-Fuller Community Hospital plans are within the next year to five years regarding any changes. In closing this paper will address the reasons that our team agrees or disagrees with the CEO’s report presented to the Board. In addressing the ratio computations for 2009 and 2008, Unaudited and Audited reports, below, there were no significant changes between the two reports. From 2008 to 2009, the current assets decreased, but showed an increase in the hospital’s liabilities. This change affected the current ratio of the hospital, which was 15.51 to 5.41. The drop in net receivables and cash equivalents according to the ratio computations dropped which had caused a change in the quick ratio of the hospital from 9.49:1 to 3.44:1. In reference to the hospital’s operating costs What plans should the hospital Board make for next year and the next five years? After reviewing Patton-Fuller Community Hospital balance sheets, the balance sheets show that they break even at the end of the fiscal year. The hospital is currently making enough to cover the debts, which equals to no profit. The hospital’s Revenue needs to increase to avoid the debts of the hospital from increasing...
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...A Community Leader’s Guide to Hospital Finance E VA L U AT I N G H O W A H O S P I TA L G E T S A N D S P E N D S I T S M O N E Y Prepared for The Access Project by Sarah Gunther Lane, MS Elizabeth Longstreth, BA Victoria Nixon, MS Under the supervision of Nancy Kane, DBA Harvard School of Public Health The Access Project is a national healthcare initiative supported by The Robert Wood Johnson Foundation and the Annie E. Casey Foundation. It works in partnership with Brandeis University’s Heller Graduate School and the Collaborative for Community Health Development. It began its efforts in early 1998. The mission of The Access Project is to improve the health of our nation by assisting local communities in developing and sustaining efforts that improve health care and promote universal coverage, with a focus on people who are without insurance. If you have any questions or would like to learn more about our work, please contact us. The Access Project 30 Winter Street, Suite 930 Boston, MA 02108 Phone: 617-654-9911 FAX: 617-654-9922 E-mail: info@accessproject.org Web site: www.accessproject.org Catherine M. Dunham, Ed.D, National Program Director Mark Rukavina, MBA, Deputy Director for Programs and Policy Gwen Pritchard, MPA, Deputy Director for Communication and Administration © 2001 by The Access Project This publication may be reproduced or quoted with appropriate credit. Acknowledgments The Access Project would like to thank and...
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...Hospitals around the United States Hospitals were not always large, nor did they have the technology that is used in today’s time. Hospitals did not exist until around 1736, in which they were referred to as almshouses (Hospitals, 2013). Almshouses were first founded in New York and could treat up to 6 or 7 patients at one time (Hospitals, 2013). After the New York almshouse was successful, new hospitals started to appear all over the United States. The US now has around 5,000 community hospitals that facilitate to people in need of medical attention (American Hospital Association, 2014). The 5,000 hospitals are broken down into for-profit, not-for-profit, and governmental organizations. All of the hospitals have the common goal of quality care for patients but have a different financial structure. For-profit, nor-for-profit, and governmental agencies are the types of organizations that make up the health care system. For-profit hospitals make up a little over a 1,000 of the community hospitals around the United States (American Hospital Association, 2014). For-Profit hospitals are usually owned by a private or public investor. The profits that the hospitals make go to pay expenses, salaries, and also the shareholders. For-profit organizations have to give some of the profits to the shareholders in order for the company to remain viable within the market. For-profit hospitals have higher cost of health care services than other hospitals or organizations (Horwitz...
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...Summary The types of health care environments that are available for patients carry many different financial obligations. There is a wide range of financial situations in healthcare. The Veterans Hospital Administration (VHA) usually requires no payment for veterans. Hospitals are a varied mix due to the patient’s insurance and payment options. Even with an excellent insurance plan, many patient, find they pay a significant co-payment along with insurance. With a surgical procedure, they may be paying anesthesia, x-ray, the physician, the surgical suite and the hospital stay. Most people are fairly shocked at being billed by so many being with one visit. Assisted Living arrangements are strictly full pay and are not covered by any insurance plan. Entity from Each Health Care Financial Environment A for profit selected is the Assisted Living Centers. These are becoming more productive as adults are entering the age when they do not have the physical ability to care for themselves at their home. They may want more social interaction or may have lost their spouse and feel this is a better way of having a way of keeping up with their health issues. Often they want to be close to family and friends and an Assisted Living Center is created to be very hotel like living with a number of conveniences depending on the level of price. Hospitals are different level of financial structure but are most commonly not-for-profit. This is distinct from a non-profit in that they still...
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...Running Head: IMPROVE FINANCIAL PERFORMANCE IN MIDDLEFIELDImprove financial performance in Middlefield | | Health Service Systems Professor: Julie DennisDeVry/Keller University Online | 2/8/2015 | | As CEO of Middlefield Hospital for 2 ½ years now, I analyzed, observe and came up with a plan of execution to finally rectify the current workforce challenges that not only burden but also tormented the hospital when I first arrived. Recently meeting with the chief of financial officer (CFO), documentation was presented, regarding the hospitals financial performance and how it’s worsen for the past 6 months. Because of the financial performance is not meeting the hospitals standards the (CFO) as well as myself are concerned regarding the future of not only the hospital but also the committed employees it has. Another important matter that was also presented during the meeting, the new hospital across town and cutting into our market share by admitting more patients, causing the uninsured patients to seek Middlefield hospital healthcare. Middlefield Hospital is not the first to face such hardship, as CEO it is my responsibility to implement a game of execution to better serve patient care as well as safety, help correct medical errors if needed, but most importantly help to motivate all staff members and a good way to do that is changing up the operational strategy and when it comes to hospital culture nothing is of importance as the patients as well as employees who have...
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...emergency room and range from the need to pay specialists for their time on call to many specialists choosing to be exclusively office-based and not participating in emergency room call at all. Differences in Organizations In a situation such as specialist shortages, for-profit and not-for-profit organizations in the general hospital setting do not have many differences. A large scale not-for-profit healthcare system may have the funds to pay stipends to specialists to take call at their facilities. A small stand-alone for-profit hospital may not have the funds to pay such stipends. “…study cites financial and legal disincentives that might make specialists reluctant to stay on-call. These include lack of payment due to the high number of uninsured patients using emergency departments and legal liabilities that lead to high insurance premiums for specialists,” (Robert Wood Johnson Foundation, 2011). The study above proves that the issues relating to the shortages are not a for-profit or not-for-profit issue but physician specific issues. How an organization chooses to deal with this physician issue is ultimately based on their financial picture and if they have the funds to offer a stipend or negotiate contracts with the specialists. For those facilities (for-profit or not-for-profit) that cannot afford to pay stipends to their specialists to take call or negotiate a contract and do not have 24/7 specialist coverage, the...
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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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...would you conduct a financial analysis to determine if this request is financially feasible and beneficial for your hospital? What are the financial elements of critical importance that you want to make sure you address in your analysis? The request to hire two additional hospital members should be accompanied by a thorough financial analysis that is designed to demonstrate the overall feasibility impact. In Question 1, it was determined that the 200 bed hospital facility needed to begin recruitment efforts to locate two qualified physicians to replace two tenured ones who were retiring. Of primary concern was patient health and the ability to address their needs on a consistent basis. To accomplish this, the hospital realizes that it must ensure that the hospital is consistently staffed with the amount of medical staff that can adequately provide patient care on a continual basis. This means that at least two physicians needed to be hired to replace the two who were scheduled to retire at a date in the future. As such, the first type of financial analysis to be performed would be an analysis of the compensation structure. The type of data to be requested during a review of a compensation structure will pertain to salary information (Payscale, 2009). This means that a review of the salaries of the two retiring physician’s salaries in terms of dollar amounts are needed for a proper assessment. This data is useful because it gives the hospital administrators information...
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...accounting, and financial management is most correct? (d) a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization. d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency (and value) of the enterprise. Which of the following are not finance activities? (d) a. Planning and budgeting b. Financial reporting c. Financial risk management d. Facilities management Which of the following statements about the finance department at large healthcare organizations is most correct? (e) a. The department is headed by the chief financial officer (CFO) (sometimes called the vice-president finance). b. The CFO typically reports directly to the chief executive officer (CEO). c. The CFO usually is assisted by a comptroller and treasurer. d. The comptroller and treasurer often have managers under them responsible for specific functions such as patient accounts management and cash management. e. All of the above statements are correct. Which of the following statements about hospitals is most correct? (c) a. Patients at general acute care hospitals typically have long patient stays, often 30 or more days. b. The optimal size for a hospital is roughly 50...
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...the healthcare system and hospitals must adapt accordingly or face dire financial challenges. Some of the financial challenges will originate from the influx of Medicaid patients due to the Medicaid expansion. Based on these changes, there is an increased tendency for hospitals to engineer ways to reduce costs such as patient selection and staff reduction. However, for a hospital to participate in Medicare, which accounts for more than 50% of hospital budgets, certain laws and regulations must be followed. This paper discusses these laws and regulations and offers suggestions on how to adjust successfully to the upcoming changes. The Affordable Care Act (ACA) and Hospital Compliance In light of the current changes in the healthcare industry, it is imperative for every healthcare organization to adapt accordingly or face dire financial challenges. A major change included in the Affordable Care Act (ACA) is the expansion of Medicaid, which will provide coverage to millions of formerly uninsured US citizens and permanent residents (Rosenbaum, 2011). However, Medicaid is notorious for much lower reimbursement compared to Medicare and private/commercial insurance (M. Schmitt, personal communication, October 7, 2013). In addition, hospitals are now required to prove that the services they bill for actually improve and maintain patients’ health (Leonard, 2013). Hospitals are also required to cover the cost of medical errors and hospital-acquired infections as...
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...Memo District Hospital A Lesson in Governance Executive Summary Barclay Memorial Hospital (BMH) has been an important asset to their community. The hospital has been around for over 50 years and has been known to provide excellent patient care. There have been many changes that have taken place within the hospital’s organization over the past years. BMH has faced a merger with a physician group that ended negatively. Barclay Memorial Hospital did recover from this and since has went back to being a public tax district hospital, now BMH is facing many new challenges internally and externally. BMH is not reaching is full patient census. There are many departments within the hospital that need to be reevaluated since they have the potential to bring in additional profit. Many of the current physicians are against listening to changes within their departments and are threatening to leave the organization. Financial projections show the hospital will soon be losing $2 million a month. The current CEO has left this organization. Many employees are in fear of the hospital becoming a for-profit hospital. This will change the culture of the organization. Employees also fear this will lead to layoffs, benefits cuts, and frozen salaries. Communication amongst board members is poorly managed. They are in fear of many physicians. There is a lack of leadership and teamwork. Many members of the board and physicians have lost the best interest of the hospital. They are not focusing on the...
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