...Financial Statement Review HCS/405 Financial Statement Review The financial statements are reports that are useful in many ways including showing where the cash going into the business comes from and how this money is used. Financial statements will also show if a company can pay back the debts that have accrued. Other useful indications for financial statements are to track a trend in any issues related to the probability, and identify individual business transactions details. To understand the financial condition of an organization, an individual would look at the organization's financial statements (Baker & Baker, 2014). Using Patton-Fullers financial statements, Team B will address the difference between unaudited and audited statements and the effect of the revenue sources. Lastly Team B will show how income and expenses are grouped for planning and control. Analyzing Patton-Fuller's financial statements, Team B will address the connections between the sources of revenues and the costs of their financial performance. Audited and Unaudited Difference The financial statements differed between audited and unaudited in one main way; unaudited statements had more information and a more detail break down. For the unaudited financial statements, expenses and revenue are given out to depict clearly where money is coming from and where it does in various costs. The unaudited...
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...Angela Johnson HCS/405 4/20/15 Simulation Review David Catoe Axia College University of Phoenix In my paper I will be providing information that pertains to how hospitals determine their revenue and expenses through using a simulation program. The information that is provided is based on The Elijah Heart Center and their results were carefully based on their analysis and decisions for staffing of the center, different types of equipment that is needed, along with their capital expansion, and any information that I may provide. Phase 1: Capital Shortage, in this simulation activity it has provided us with two different types of cost cutting options. The first was to minimize the amount of staff that the hospital uses. This decision was made because they knew that if the agency money would get more money if they hired additional staff from an agency and did not provide benefits. The agency personnel, that has been hired is already aware that at any given time they can be let go from their position and their position can be filled by a new hired person. Elijah heart Center may want to stop hiring agency contractor and start using the employees they already have. The cost cutting goal that needed to be reached had to be a cost savings of 750,000. The option that was selected has exceeded the amount of 811,249 just for the first quarter. This type of option was not a cost saving for Elijah Heart Center. Perhaps if Medicare...
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...Simulation Review HCS/405 October 15, 2012 Simulation Review: Elijah Heart Center Healthcare can be considered one of the most profitable industries around today. This potential for revenue has made it very important to have a financial team that fully understands the workings of a healthcare organization. There are so many areas that can easily go wrong if the wrong financial decisions are made. Using the simulation helped one to understand the different outcomes possible when needing to make certain financial decisions that many organizations face today. Phase I: Capital Shortage The main problem with Elijah Heart Center is that although the center is doing well, it seems to be growing so fast that profitability is dropping. This is because of an increased patient volume and an increase in the wrong staff. The cost-cutting options that I selected were to reduce agency staff and changing the skill mix. I opted for “reducing proportion of agency contracted staff” because a large portion (almost twice that of employees directly hired by the hospital) of the revenue was being wasted in this area. The hospital pays premiums to staffing agencies that is just not necessary. Another thing to remember is that the skill level that these staffing agencies have is much lower when comparing them to the hospital staff, which have been there longer and are more experienced with patient care. I also chose to I noticed that once I selected this, the revenue...
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...Ethical Financial Management Dana Doody HCS 405 2 Sep 2014 Working as a financial manager comes with a lot of responsibility; and a lot of standards of practice. Just like physicians and nurses, financial managers of health care organization have a set of rules and ethical guidelines they must follow in their practices. In this paper, I will what the four elements of financial management are. There will also be a summary of generally accepted accounting principles (GAAP) and financial ethical standards. Business’s mist follow these standards in order to comply with federal agencies such as the Financial Accounting Standard Board. I will also provide examples from articles that explain how corporations comply with these standards and deal with fraud or abuse. The four elements of financial management. The key to good financial management is to be well organized and have good finical discipline. Health care is a business and having a good concept of financial management will help those businesses run smoothly. “The healthcare industry is a service industry, its essential business is the delivery of healthcare services.”(Refaat, 2014) Having a good understanding of the elements of financial management can help to explain the financial management of that service industry. The first element is planning, planning helps identify the steps that must be taken in order to accomplish the organizations objectives. The second is controlling, this is in place to help ensure...
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...University of Phoenix Material Week One Health Care Financial Terms Worksheet Understanding health care financial terms is a prerequisite for both academic and professional success. This assignment is intended to ensure you understand some of the basic terms used in this course. Complete the worksheet below according to the following guidelines: In the space provided, write each term’s definition as used in health care management. You must define the term using your own words. In the space provided after each term’s definition, summarize a health care management scenario that illustrates the importance of the skill, concept, procedure, or tool that the term refers to in 125 to 150 words. In the scenario, you may wish to consider the following: o Why is the skill, concept, procedure, or tool necessary for accurate record keeping, operational efficiency, excellent patient services, employee management, regulatory compliance, reducing costs, forecasting, and so forth? o What successes are enabled by an adequate understanding or appropriate application of the skill, concept, procedure, or tool? o What risks or failures are associated with an inadequate understanding or inappropriate application of the skill, concept, procedure, or tool? Save the completed worksheet as a Microsoft® Word® document with your name in the file name. Submit the file to your instructor. Worksheet Submitted By: |Term ...
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...Health care organizations, particularly hospitals face increasing problems managing cash flow due to changes in billing procedures and the economic climate. Research quoted in Fierce Healthcare Finance showed that hospitals are using investment cash flow, normally reserved for capital expenses, to pay for operating expenses. In a study quoted by Fierce Healthcare Finance (Ziegler, 2008) the depth of the problem becomes apparent “Between 2004 and 2007, the 170 hospitals studied by Best allocated a steadily greater portion of their invested assets to cash and short-term investments, climbing from 27 percent in 2005 to 31.1 percent in 2007.”With reduced funds available for capital expenses, it becomes difficult for hospitals to keep up with technology and to thrive. Elijah Heart Center is facing the financial dilemma common in specialized health care organizations, the combination of the need for improved technology, reduced income, and the demand for expansion. Without the needed technology and expansion, there little the hospital can do to improve income. The financial situation requires a combination of strategies to reduce costs and to make the wisest choices regarding acquiring needed technologies and expansion. Phase I: Capital Shortage The goal is to save $900,00 for the first year and to help improve the cash flow problem that Elijah Heart Center is experiencing. The hospital can select two cost cutting options that in an effort to obtain that goal. The five...
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...Patton-Fuller Ratio Computation Team B: When it comes to the CEO’s report, we cannot agree with the entire report. Some of the results mentioned in the CEO’s report are based on the unaudited financial statements. The CEO mentioned a 3% increase in expenses, as shown in the unaudited reports, but when figuring out the ratios in the audited reports, the expenses show an average of a 9% increase. However, in the audited reports, it does show an average increase of 9% for the revenues of this company. According to the asset numbers, this facility did acquire much more property and equipment, which is a positive result. Even in the economic downturn, the hospital did have a decent year. The audited financial statements showed that the operating results and financial position reflected a small difference from the CEO’s report to the Board. The current ratio shows a 5.37:1, and the quick ratio is 3.44:1. According to the audited financial statement computation, the Days Cash on Hand (DCOH) is 19.6 days, and the Days Receivable is 46.7 days. Patton-Fuller Community Hospital has a Debt Service Coverage Ratio (DSCR) of 2.69 with Liabilities to Fund Balance of 3.65. Their Operating Margin currently stands at .00067% with a Return to Total Assets percentage of 7.9%. The CEO’s report states that most of the expenses have been kept to a 3% increase. This is true for most of the expenses, but the overall increases for total expenses are right under a 6% increase. Also, the net...
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...Simulation Review HCS405 Jan1, 2014 Simulation Review Introduction: Elijah hospital provides both cardiac diagnostic services as well as rehabilitation programs. In this simulation, we will evaluate and assess the funding options for obtaining a new or refurbished medical equipment. Phase 1: By reducing the agency staff, the organization will be saving a lot of money. The other cutting option, that I selected, was hiring unlicensed staff. The second option for phase I is based on loan. The monthly payment period is over in twelve months with no prepayment limitation that is an excellent deal. Taking the first loan will help the hospital close the loan within three months, as compared to the second loan option which could take six months to prepay. Phase II: Choosing refurbished machines will be a good option and will save the hospital almost 50 percent of the cost price as compared to a new one. I realized that it might be best to go with this. I selected the operating loan because it has a lower upfront payment and lower monthly installments. Leasing allows businesses to address the problem of obsolescence. Therefore, when the technology advances and the machine turn out outdated the terms of the loan would allow the machine to be replaced with a new updated model. Phase III: Tax Exempt Revenue Bonds is not the best choice, for it has a usable time set of three years as well as an escrow against gross revenue. I chose HUD 242 loan because it has...
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...Simulation Review Amber Gosney HCS/405 February 11, 2013 Paul Herskovitz Simulation Review This paper provides information regarding a simulation review that was intended to show how a hospital determines revenue and expenditures. The information was based on the Elijah Heart Center (EHC), and all decision was made with careful analysis of EHC employees, along with me. Capital Shortage In the simulation activity I chose two types of cost-cutting options. The first choice was to minimize the amount of agency staff within the facility. Contract laborers require more money for ‘hire’. Typically this higher pay is due to the fact that they are not usually offered ‘in-house’ benefits. Not all agency staffing has to be laid off. Hospital personnel can evaluate which positions are more pertinent, and keep those. Contract laborers are ‘hired’ on with the understanding of being ‘laid-off’ at some point. It is more legit to rid of or lesson those contractors versus those ‘in-house’. Furthermore, contract laborers are not as skilled as those ‘in-house’ laborers who consistently have direct care of patients. The second choice was to change the skill mix. While hiring unlicensed personnel may not be ideal, it would sure save money. Unlicensed personnel do not require as much pay because they are unlicensed, and do not hold as much training or education. Depending on the job duties, unlicensed personnel can be utilized in more than one setting...
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...University of Phoenix Material Week Three Health Care Financial Terms Worksheet Understanding health care financial terms is a prerequisite for both academic and professional success. This assignment is intended to ensure you understand some of the basic terms used in this course. Complete the worksheet below according to the following guidelines: In the space provided, write each term’s definition as used in health care management. You must define the term in your own words. In the space provided after each term’s definition, summarize a health care management scenario that illustrates the importance of the skill, concept, procedure, or tool to which the term refers. In the scenario, you may wish to consider the following: o Why is the skill, concept, procedure, or tool necessary for accurate record keeping, operational efficiency, excellent patient services, employee management, regulatory compliance, reducing costs, forecasting, and so forth? o What successes are enabled by an adequate understanding or appropriate application of the skill, concept, procedure, or tool? o What risks or failures are associated with an inadequate understanding or inappropriate application of the skill, concept, procedure, or tool? Save the completed worksheet as a Microsoft Word document with your name in the file name. Submit the file to your instructor. Worksheet Submitted By: Adriana Smith December 24, 2012 |Term...
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...Roles and Functions of Health Care Management Planning, controlling, organizing, and leading are the four major roles and functions of management in a healthcare setting and are essential for the growth and survival of the health care industry. Good management skills and the application of management functions provide the framework needed by the health care organization in order to help the manager and staff perform successfully. To better understand the four major management roles and functions of management we must first examine how they apply to the management and the management of others. Leading or leadership is defined as the process of inspiring, motivating and directing behavior. Leadership or a leader must carry a strong vision of the future for the organization, and encompass the ability to influence and lead behavior of front line staff and managers. Leaders inspire and motivate and focus on people. They innovate and inspire. The knowledge, insight and skill of a leader should be greater than the group members and influence the group in such a way that the overall goal becomes their own. A leader carries out important functions on behalf of the organization and acts to an extent as a representative of the group. However, in order to carry out specific functions there must be a plan in place. Planning is the process of setting performance objectives and goals and then deciding what actions should be taken to bring about an outcome in the future. Through planning...
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...HCS 405 Week 4 DQ 2 To Buy This material Click below link http://www.uoptutors.com/HCS-405/HCS-405-Week-4-DQ-2 Do any of the reports you receive in the course of your work use trend analysis? Why do you think so? Do any of the reports you receive in the course of your work use common sizing? Why do you think so? Are you or your immediate supervisor involved with staffing decisions? If so, are you aware of how staffing forecasts are prepared in your organization? Describe an example. Have you, in the course of your work, become involved in problems with capacity level issues such as space and equipment availability? If so, would forecasting have assisted in solving such problems? Describe why. If you reviewed a budget at your workplace, do you think the major increases and decreases could be explained? If so, why? If not, why not? Have you ever in the course of your work reviewed a report that had been annualized? If so, did you agree with how it appeared to be annualized? Were you also able to see the assumptions used to annualize? If so, were you able to recalculate the results using the same assumptions? Have you ever in the course of your work reviewed a financial report that applied inflation factors? If so, were you able to see the assumptions used to apply the factors? If not, why not? Please describe. For more Assignments visit:...
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...Financial Statements Review Financial Statements Review The following paper will address the Patton-Fuller Community Hospitals financial statements including the differences between the audited and unaudited financial statements, the effect that revenue sources had on the financial reporting for the hospital and how the hospitals revenue and expenses were grouped for planning and control. When organizations report unaudited financials it is important to realize there may be changes in the audited financial reporting that may occur after an independent review by an outside accounting firm. Additionally it is also important to realize the effect revenue sources can have on financial reporting and the importance of grouping revenue and expenses when implementing internal financial planning and controls. All of the financial information discussed in this paper is important from a financial accounting perspective for external decision makers can evaluate how well the organization has achieved their goals, as well as, a management accounting perspective to provide internal decision makers with financial information to make operational decisions to help them achieve their goals. How Did the Audited and Unaudited Financial Statements Differ? - Stormie There are two types of financial statements, unaudited financial statements are financial statements that are generated based the financial information that has been provided to certified public accountants based on the accuracy of...
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...| Week 4 Individual Assignment | Simulation Review Paper | | By: Kayte Zbikowski | 7/21/2011 | HCS/405 Health Care Financial Accounting Teacher: Mike Shin | My strategy will consist of three phases. These phases include: capital shortage, funding options for equipment acquisition and funding options for capital expansion. During these three phases I will observe the necessary financial statements and documents. From this information I will analyze the information and decide the best strategy for improvements. I will not only focus on the goals for the clinic, but long term budget goals as well. Phase I: Capital Shortage There were two options that I chose to cut costs. The two options that I chose was to reduce agency staff and changing the skill mix. I chose to reduce agency staff because “Reducing proportion of contract labor used to fill vacancies among patient care workers would reduce costs, staffing nursing units and other patient care areas. The salaries of agency contracted people are twice that of the other hospital staff. Reducing these personnel will tremendously cut down costs. Bridging a working capital shortage is one of the strategies that can help increase the hospital’s revenue if a true concrete plan can be formulated. (University of Phoenix, 2011). I chose changing the skill mix because “Changing the skill mix by hiring unlicensed assistive personnel will offer an effective means of addressing economic realities. This option...
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...Reporting Practices and Ethics Paper My strategy will consist of three phases. These phases include: capital shortage, funding for equipment acquisition and funding options for capital expansion. While during these three phases I will also observe the necessary financial statements and documents that need to be review so that I can make better decisions on all three phases. From this information that I have I will then analyze and review the information and make a sound decide that will they best strategy for improvements? I will not only focus on the goals for the clinic, but long term budget goals as well some short term goals if needed. Phase I: Capital Shortage There were two options that I chose to make cut costs to. The two options that I chose were to reduce the agency staff and changing the skill mix. I chose to reduce agency staff because “Reducing proportion of contract labor used to fill vacancies would save use money and among patient care workers would reduce costs, staffing nursing units and other patient care areas where take cuts as well. To me the salaries of agency contracted that are brought on are people that are getting paid twice as much as the other hospital staff. Also by reducing these personnel issues will then tremendously cut down the costs made toward the hospital. Bridging a working capital shortage is one of the strategies that can help increase the hospital’s revenue in many ways if there is a true concrete...
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