Explains the importance of making a good case for expaExplains the importance of making a good case for expanding healthcare providers’ methods of calculating break-even analysis.nding healthcare providers’ methods of calculating break-even analysis.
Nursing homework help
Running Head: Capital Decisions 1
FINANCIAL MANAGEMENT IN HEALTH CARE 4
Capital Decisions
Discusses why is it more difficult for healthcare companies to get expansion financing in the today’s economic climate and financial issues with expansions.
Health care companies are consistently facing financial difficulties in the current economy. The main reason as to why the healthcare companies are facing difficulties in access finance is because of the large number of uninsured individuals who have been seeking the services. The rate of reimbursement from both the Medicare and the medical has also contributed as the it’s very low. Thus, a financial burden which is very significant has been put on the hospitals (Finkler, Ward, & Calabrese, 2018).
The number of underpayments for the two has also increased making the companies to have cost shifts thus increasing the cost of the services as well as the supplies. Shortage of staffs is also a contributing factor to these challenges. This has increased the level of debt owed by these companies making it difficult to refinance the loan that is already existing or even acquire more capital as they can never access credit. More to these the company has started filling bankruptcy and some have gone to the level of closing (Baker, Baker, & Dworkin, 2017)
Describes why healthcare companies need to look beyond their banks to secure financing.
Health companies should look secure financing from various sources as the bank’s loans may not be always available. The poor credit rating the health companies are facing as they are having difficulties in paying their loans may not guarantee them a bank loan. Other source of financing such as crowd sourcing, leveraging among other may be cheap, easily available and the procedure of acquiring the financing could be simple unlike the bank loans.
Explains the importance of making a good case for expanding healthcare providers’ methods of calculating break-even analysis.
Making a good case for analysis the breakeven will be vital as it will help in determining the if what the health companies are charging for every services or product offered is enough to cater for all the cost inquired to produce the product or make the services available. This will also help in analyzing the amount of sales required to reach the break even. The most important is that the healthcare companies can assess what their true operating cost is as well as their prices. In addition to thee the manager will get an insight on their price accuracy and weigh if the goals set on the sales are realistic (Finkler, Ward, & Calabrese, 2018)
Discuss non-financial factors do the authors believe need to be included in break-even analysis?
The author believes that during the analysis it is important to consider the volume of sales, the depreciation of the tools and equipment’s being used, the technology, goals setting, the operating environment which includes the political, economic, cultural religion and the sociological factors. The analysis must also consider the changes that may occur in the course of the operation (Baker, Baker, & Dworkin, 2017).
Explain how current issues, such as the Affordable Care Act, affect break-even analysis.
The Affordable care Act, which is legislation, has made significant efforts in reforming the systems of the healthcare as well as in controlling the spending of the healthcare in the US. This Act has decreased all fixed costs of various companies which has directly reduced the production units for the break-even as the fixed cost reduces. The margin of involvement has remained constant.
Summarizes the authors’ viewpoints and apply the concepts to your case. Also include a summary of your viewpoint in comparison to the authors’. Be sure to specifically address the methods that influence capital investments and decision-making; and explore methods of analyzing capital investments (Payback, Net Present Value, and Internal Rate of Return). This report will serve as your Capital Management section of your project.
The author concludes that every decision that is made in the health care department has some implications that are ethical. This implication either affects the patients, the leaders or the service providers. While investing capital, it is important for companies to ensure that the capital invested should give the best return which are possible. The management should ensure that there is maximization of the wealth of the shareholder as well as increased profit not forgetting the quality of services.
The decision is mostly influencing by the management outlook, the growth opportunities being created the changes in technology, the strategies used by the competitors, the cash flows in the budget, the market predictions, the fiscal incentives as well as other factors which are non-economic. The capital investment can be analyzed using the payback period which explain the amount of time that the company will take in order to recover its initial investment from the profit and the savings, the net present value method which puts into consideration of value of money over time, and the internal rate of return which gives an estimate of the profitability of an investment. These methods will help in knowing how profitable certain investments will be (Finkler, Ward, & Calabrese, 2018,).
In conclusion, it is also important to put into consideration all the stakeholders and how they are affected by a certain project before investing in it.
Analyze the key points of the Enron Scandal and specifically address how professionalism and ethics influence decision-making. How do unethical standards impact an organization’s performance and capital investments? Reference the concepts of embezzlement and losses. Explain how you maintain ethical standards in relation to Code of Ethics.
The key points incudes having a balance of the quality of care provided as well as the productivity which means that the companies should analyses if their focus in providing the healthcare id guided by the right principles. The other key point is on how access to health care should be improved. It is ethical for the healthcare to ensure that all individuals can access the medical care which is basic. In addition to this it is ethical for the system to encourage growth of the workforce in the health care by supporting them for future service providing. This involves having the right team whom the company offers regular training a way of preparing them for future service provision (Nowicki, 2018).
