Health Care Finance
Assets and Liabilities

Assets and liabilities are found in a balance sheet. Baker and Baker (2011, p. 107) define a balance sheet as a record of "what an organization owns, what it owes, and basically, what it is worth."

Item

Asset

Liability

Cash

Inventory

Bonds payable

Buildings

Payroll taxes due

Accounts payable

Equipment

Notes receivable

Assets, in basic terms, are all those items that an entity owns. In essence, an asset should have some value attributable to it. Current assets, according to Shim and Siegel (2000, p. 25), "are assets expected to be converted into cash or used up within one year or the normal operating cycle of the business, whichever is greater." They include such items as cash and stock. Long-term assets, on the other hand, include all those assets or items an entity does not intend to consume within a single year. Examples include, but they are not limited to, motor vehicles and buildings.

Liabilities could be defined as the…...

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References

Baker, J.J. & Baker, R.W. (2011). Health Care Finance: Basic Tools for Nonfinancial Managers (3rd ed.). Sudbury, MA: Jones and Bartlett Publishers.

Shim, J.K. & Siegel, J.G. (2000). Financial Management (3rd ed.). Hauppauge, NY: Barron's Educational Series, Inc.

Healthcare Finance: hat is the break-Even analysis approach and its application in health care organizations?
Unfortunately, hospital and health care budgeting of resources has become increasingly important in this cost-conscious era of health care. The last decades of cost-controlled medicine have required fiscally conscious approaches to the healthcare for many organizations, often at the expense of patient services. A financial analyst must strive to minimize this, yet still keep the organization afloat. A segment that does not make money or at least break even for the health care provider may have to be eliminated.

Health care facilities may take longer to break even on their initial investment than other forms of businesses. Also, the break-even period for primary care is different compared to tertiary care. Still, developing any break-even action plan begins with a clear understanding of any significant shortfalls against benchmark, with a special focus on provider productivity in terms of…...

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Works Cited

Halley, Marc D. & Lloyd. (Nov 2000) "How to Break Even on an Acquired Primary Care Network." Healthcare Financial Management. Retrived 17 Apr 2005 at  http://www.findarticles.com/p/articles/mi_m3257/is_11_54/ai_66936335/pg_2

Healthcare Finance
The relationship between the doctor and a possible patient is established when the physician asks the person for the first time as how he could be of possible help. This direct and simple enquiry is the beginning of the trust of the patient that has to be put in the physician for any treatment to proceed. The patient is in need of help at that time, and has to trust the professional for getting the help and the patients want to do it. They need a person to take care of them during their period of suffering from illness. This relationship between the patient and the physician in the financial sphere also involves the same amount of reliance, confidence and trust, as otherwise, not treatment can be undertaken. This makes it essential that the physicians clearly mention to the patients when there is any conflict of interest in their…...

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References

"Changes in Health Care Financing and Organization: Deriving Best Practice Models for the U.S. Health Care Safety Net: A Cross-State Meta Analysis of Finance, Organization and Outcomes" Retrieved from   hl=en Accessed on 7 June, 2005http://64.233.179.104/search?q=cache:h3F83ojarhYJ:depts.washington.edu/eprc/areas/proposalnarrative%2520web.pdf+Changes+in+Health+Care+Financing+and+Organization+& ;

'Health Administration Press" (March/April 2003) Journal of Health Care Management.

Volume 48, Number 2. Retrieved from   hl=en Accessed on 7 June, 2005http://64.233.179.104/search?q=cache:p36ZB3H0T4AJ:www.ache.org/pubs/jhm482.cfm+healthcare+finance+relationship+centered& ;

"The Core Program: Trust and the Patient -- Professional Relationship" (September, 2000) The

Healthcare Finance
hat are the dynamics of patient accounts receivable? hat are some of the factors affecting patients accounts receivable?

Facing the challenge of how to address the hospital's unpaid accounts receivable can be one of the most emotionally draining issues for a patient accounts receivable department. In addition to people simply reigining on their payments, the department must face patients who cannot pay, who did not understand that their insurance would not cover a procedure, or patients who simply refuse to pay because they fault the hosptial for inapprorpriate care.

Such a combination of patient's financial, insurance, legal, and emotional complaints often drives some hospitals to explore the option of moving their accounts receivable from a primary collecting agency within the hosptial to a secondary agency. But once a hosptial has written an accounts recievable off to bad debt and sends it somewhere else, it can be very cumbersome transferring all that…...

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Works Cited

"Bad debt rising: when to sell your accounts receivable." (Aug 2004)

Healthcare Financial Management. Retrived 21 Apr 2005 athttp://www.findarticles.com/p/articles/mi_m3257/is_8_58/ai_n6154194

Healthcare Finance
Government rules:

In United States the Congress had passed the Medicare Prescription Drug, Improvement and Modernization Act of 2003 or MMA and with this imposed a stoppage for 18 months on the starting of new physician owned specialty hospitals. At the same time, they also wanted to know the position regarding certain matters of physician owned heart, orthopedic and surgical specialty hospitals through MedPAC. The team visited sites, made legal analysis and met the share owners in these hospitals and finally presented a report to the Congress. It had also gone through the cost reports received from Medicare and inpatient claims of 2002, which was the most recent at that time. This will naturally form the basis of such hospitals being permitted or not. (Physician-owned specialty hospitals)

Findings of MedPAC:

The findings of this committee showed that:-

Physician owned hospitals generally treated patients who had less severe problems and concentrated on specific diagnosis…...

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REFERENCES

"Healing Ministry of the Madras Diocesan Medical Board" Retrieved from   Accessed 21 August, 2005http://www.csimadrasdiocese.org/hospital.htm 

Kamath, Gauri. "Doctors in arms" Retrieved from http://www.businessworldindia.com/Nov1003/indepth01.asp

Accessed 21 August, 2005

"Parkwest Medical Center" (October 25, 2004) Retrieved from   Accessed 21 August, 2005http://www.covenanthealth.com/coldfusionapplication/covhlthwhatsnew/Detail.cfm?Post_ID=12027 

Health Care Finance
One of the things people should know is that the landscape for health care is not good at present, especially in the not-for-profit sector. We are definitely running a not-for-profit health care institution here at VGH. Consider the Moody's Outlook for 2012, which is currently negative. There are a number of challenges that institutions like ours face, and will be explained in this article.

Hospital revenue growth for the next 18 months is forecast to be modest, but there are further issues that complicate the situation. For example, the expectations for the economy in the coming months remain poor. There will also be operating pressures resulting from regulatory changes and these will also include balance sheet challenges. The ultra-low interest rates on our debt are especially challenging to our ability to invest for the future.

Some would argue that there are opportunities in the market, for example mergers and acquisitions…...

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References

Moody's. (2012). Moody's U.S. not-for-profit healthcare outlook remains negative for 2012. Moody's. Retrieved March 28, 2014 from -- PR_236074https://www.moodys.com/research/Moodys-U.S.-not-for-profit-healthcare-outlook-remains-negative-for

Healthcare Finance
In order to be successful in the present complex and frequently unfavorable business settings, a healthcare organization's strategic direction should be estimated, focused, and financially sustainable. Strategic business planning is an indispensable instrument to aid organizations focus strategic choices within the financial actualities of their environment. An efficient strategic business planning cycle includes making an evaluation, identification of business objectives, making strategies, performing an impact analysis and developing an execution plan. The important steps in strategic business planning comprises of conducting an assessment, identifying business objectives, making a strategy, carrying out an impact analysis, and developing an implementation plan. This procedure could include a one-to-three-year sequence and can be applied at the clinical service line or at the level of business unit level for a greater focused planning. The only certainty in the present healthcare environment is a constantly changing set of hypothesis regarding the future. (Bachrodt; Symth, 2004)

The…...

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REFERENCES

'A New Look Into Strategic Financial Planning." Retrieved from / Accessed on 4 May, 2005http://www.hospitalconnect.com/aha/fsi/monitor

Bachrodt, Andrew. K; Symth, Patrick. J. (November, 2004) "Strategic business planning linking strategy with financial reality" Health Care Financial Management. Retrieved from   Accessed on 4 May, 2005http://www.findarticles.com/p/articles/mi_m3257/is_11_58/ai_n6359509 

Brown, Judith. (2005) "Ten Strategies to Manage Employee-Healthcare Costs." Career

Journal. Retrieved from   Accessed on 4 May, 2005http://www.careerjournal.com/hrcenter/ipma/20041207-ipma.html 

Health Care Finance
Financial analyst Eric Feigenbaum (2009) notes that while we like to think of hospitals in terms of compassion, patient care and dedication to altruistic aims, they are businesses concerned with revenues and expenses like any other business (Feigenbaum 2009, p.2). In today's hectic world of economic downturn and financial struggles felt from individuals of every demographic and social status, revenue and expense accounting are issues that must be addressed carefully by nearly every business in every market. The same holds true for the health care industry and health care providers. With financial uncertainty come threats for health care providers in managing revenue and expenses during the upcoming years. However, with these threats remain certain opportunities for health care providers to take on in order to combat the uncertainty that comes with managing revenue and expenses when the amount of each is not ideal.

With the appropriate management techniques, the…...

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References

Bristow, W. (2009). How to thrive during a recession. Doctor's Digest. 81(1): p.16.

Retrieved from: LexisNexis Database.

Feigenbaum, E. (2009). Categories of expenses and revenues in the hospital business setting. Demand Media, 2(1), pp. 2-5. Retrieved from: ProQuest Database.

Johnson, N., McNichol, E. And Oliff, P. (2011). Feeling the recession's impact on health care. Handbook of Health Economics 3(2), pp. 54. Retrieved from: ProQuest Database.

If the area wage index is greater than 1, the labor share equals 69.7%. The law requires the labor share to equal 62% if the area wage index is less than 1.0.
2) the wage adjusted labor share is added to the non-labor share of the standardized amount.

3) the wage adjusted standardized amount is multiplied by a relative weight for the DG. The relative weight is specific to each of 746 DG's (for fiscal year [FY] 2009) and represents the relative average cost of a beneficiary in one DG compared to another.

4) if applicable, additional amounts will be added to the IPPS payment for hospitals engaged in teaching medical residents, hospitals that treat a disproportionate share of low income patients, and for high cost outlier cases" (Acute Inpatient Prospective Payment System, 2009).

Physician services include office visits, surgical procedures, and other diagnostic services. These services are usually performed in physicians' offices,…...

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References

Acute Inpatient Prospective Payment System. (2009). Retrieved April 2, 2009, from Centers

for Medicare and Medicade Service Web site:

 http://www.cms.hhs.gov/MLNProducts/downloads/AcutePaymtSysfctsht.pdf 

Physician Services Payment System. (2008). Retrieve April 3, 2009, from MedPac Web site:

Health Care Finance
There is a clear relationship between the present value and future value factors.

According to the research, "the future value (FV) measures the nominal future sum of money that a given sum of money is worth at a specified timed in the future assuming a certain interest rate, or more generally, rate of return" (Smart Notes 2013). On the other hand, the present value is the exact value that is assigned based on the date of payment or previous series of payments that were made prior to the inquiry. They are related in the notion that they reflect compounding interest, which is the interest rate that is added to the original principle. As such, individuals can compute the potential future value factor using an equation that relates the present value. The equation can be seen below:

(Smart Notes 2013)

ased on this correlative relationship, the present value is impacted as the…...

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Bibliography

O'Neill, Michael. (2011). Future Value / Present Value Concepts. Accounting Support Page. Web. Retrieved 10 Oct 2013 from  http://seattlecentral.edu/faculty/moneil/A230/AppxC/Ch15AppxA.htm

Healthcare Finance: DCF Versus the Market Multiple Approach
The DCF approach is considered as one of the best approaches for valuing a business. The approach is extensively sensitive to the forecasts made through an analysis process. Every adjustment that is made, even for the smallest ones, have the ability to let the DCF approach take a wide variance. The approach gives an assumption that the fair value has the possibility not to be accurate. DCF approach is time intensive as compared to other valuation techniques. It gives results whenever needed. The main ideas with this approach are that what is done is forecasting future performances even in cases where the business body does not have a 100% transparency. The DCF approach is a target that is not stagnant (Vinturella & Erickson, 2013). It is moving. In the case that the expectations of a company change, the fair value will take a…...

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References

"Asset-based valuation methods." (2012). Valuadder. Accessed 24 April 2017. From www.valuadder.com/blog/2012/06/20/asset-based-valuation-methods/

"Is Leasing a Car Right for You?" (2013). Fox Business. Accessed 24 April 2017. From video.foxbusiness.com/v/2647689333001/?#sp=show-clips

Vinturella, J. B. & Erickson, S. M. (2013). Raising Entrepreneurial Capital. New York, NY: Newnes, 2013

Healthcare Financial Management
To quote Jonathan Clark at the beginning of his article, "Improving the revenue cycle can be a daunting task due to the scope and complexity of the interdepartmental process." Of the suggestions offered by the authors, which concept(s) give you the greatest insight into creating an improved evenue Cycle process in the organization where you work (or one in which you are familiar)? Be sure to identify which article or author you are referencing.

In his comprehensive advisory article to improve the medical industry's revenue capturing capabilities, entitled Strengthening the evenue Cycle: A 4-Step Method for Optimizing Payment, Jonathan Clark provides a series of sensible solutions to the ongoing dilemma of payment optimization. David Hammer also provides guidance to healthcare finance professional in his article The Next Generation of evenue Cycle Management, by reminding them that the key performance indicators (KPIs) which dictated policy in previous years have been…...

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References

Clark, J. (2008). Strengthening the revenue cycle: a 4-step method for optimizing payment. Healthcare Financial Management, 62(10), 44.

Hammer, D.C. (2007). The next generation of revenue cycle management. Healthcare Financial Management, 61(7), 49.

Seddon, J. (2008). Think system. Management Services, 52(2), 10.

Wilson, D.B. et al. (2004). 3 steps to profitable managed care contracts. Healthcare Financial Management, 58(5), 34.

Through the use of statistical modeling the researcher was able to arrive at the validation of their hypothesis.
Assessment of esearch Findings

Based on the results of the statistical modeling used in conjunction with the Household Component of Medical Expenditure Panel Survey (MEPS) data set, it was found that tax subsidies do not have a differentially large or targeted effect on the prevalence of high burdens (Selden, 2008). Selden (2008) defines burdens as cash and wage equivalents of employer premium contributions. The results show that tax subsidies assist those above the poverty line more than those below it. The study is concluded prior to explaining why this is so, yet the author contends there are many other factors in addition to tax-based subsidies that have an impact on those below the poverty line being able to afford medical care even with tax-based subsidies.

Analysis

This research study shows that at statistically significant level…...

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References

Selden, T. (2008). The effect of tax subsidies on high health care expenditure burdens in the United States. International Journal of Health Care Finance and Economics, 8(3), 209-23.

(Menzel, 1990, p. 3) Fisher, Berwick, & Davis alude to the idea of integration in health care, with providers linking as well as creating networks of electronic medical records and other cost improvement tactics.
The United States and other nations over the last twenty or so years, have begun a sweeping change in health care delivery, regarding the manner in which health information is input, stored and accessed. Computer use in the medical industry has greatly increased over the last thirty years the culmination of this is fully networked electronic medical record keeping. (Berner, Detmer, & Simborg, 2005, p. 3) the electronic medical record trend began in the largest institutions first, as hospitals and large care organizations attempted to reduce waste and improve patient care, while the adoption has been much slower among physician's practices and smaller medical institutions. (Hillestad, et al., 2005, pp. 1103-1104) Prior to this time medical…...

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Resources, and Utilization

Based upon the fact the baby boomers are all approaching retirement age, it would be a good idea for the organization to pursue programs that are geared towards seniors. Programs that are geared towards seniors are a great way to produce quality comprehensive health care for those in the community that need it. The organization might pursue the idea of opening a PACE program. " The Program of All-Inclusive Care for the Elderly (PACE) is a capitated benefit authorized by the Balanced Budget Act of 1997 (BBA) that features a comprehensive service delivery system and integrated Medicare and Medicaid financing" (Program of All Inclusive Care for the Elderly (PACE), 2009). The PACE program features complete medical and social services that rely on an interdisciplinary team approach in an adult day health center that includes in-home and referral services depending on the person's needs (Program of All Inclusive Care for the…...

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References

Baker, J. Judith & Baker, R.W. (2006). Healthcare Finance, Basic Tools for Nonfinancial

Managers. Maryland: Aspen Publications, Inc.

Bury, Elizabeth, Carter, Kara S., Feigelman, Masha and Grant, Jennifer M. (n.d.). Retrieved June

2, 2009, from Web site: