...motives behind why two firms would assume that they are more financially sound as compared to being alone. These kinds of firms are more concerned in innovation based offerings and are always considering ways through which they could take a leap forward. The new phenomena driving the healthcare sector has shifted from the revenue side towards effectiveness and reduction in expenses. One major component of the expenses is to do with Research and Development expenditures (Hall, B. H. 2002). As a result of mergers, the companies are able to take control of the costs and reduce the burden on resources. Due to the fact that healthcare organizations have to keep themselves updated with all the technological advancements and innovations taking place, as a result financing needs are always arising. The financing could either be done through equity or debt. Equity would be more costly as compared to debt. Therefore, healthcare organizations would need to rise financing through various debt alternatives, one of which is bank loans. It is understood that the borrowing costs are lower for a merged firm, as compared to if the companies were not merged. Normally, a merged firm is able to borrow at lower interest rates as opposed to if the firms were to borrow separately (Grinblatt, M., & Titman, S. 2002). Key Financial Drivers There are a number of financial drivers that would likely cause health care organizations to merge, meaning the main motives behind why two firms would...
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...Creativity Spontaneous Induced Challenges Unmet Needs Financial opportunity Entrepreneurship Corporate directives Government Agency directives Competition Crises Fear So What’s Next? Healthcare (Medicine) has to actively adopt Innovation in its teaching and culture, rather than letting it occur passively Innovation is needed to overcome the many stresses that exist on Healthcare (Medicine) today Healthcare Innovation - takes many forms Incremental : Adding a new feature to an existing product Examples: Next generation pacemaker that are safe for MRI, Biodegradable, diagnostic stents Healthcare Innovation - takes many forms Disruptive: New value creation, paradigms change Example: DES, TAVI It is difficult to foresee Disruptive Solutions They are rare to find: Requires excellent access to the best deal flow and deep intuition about the relevant markets The validity of their claim is more difficult to substantiate : Requires more thorough due diligence Development and execution risks are bigger : Needs better team and more focused entrepreneurs This is the ultimate challenge for early stage VCs: Market intuition > Technology validation > People assessment Healthcare Innovation In healthcare, we’ve innovated new technologies and products While innovation in service and business models has lagged Core Challenges: Serve larger populations with less resources...
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...Health Care Spending HCS 440 Economics: The Financing of Healthcare Class Group: BSEW1GQMZ5 University of Phoenix Online Instructor: Geoffrey J. Suszkowski, Ph.D., LFHIMSS 05/11/2015 Health Care Spending “In 2013 U.S. health care spending increased 3.6 percent to reach $2.9 trillion, or $9,255 per person, the fifth consecutive year of slow growth in the range of 3.6 percent and 4.1 percent. The share of the economy devoted to health spending has remained at 17.4 percent since 2009 as health spending and the Gross Domestic Product increased at similar rates for 2010 - 2013”("National Health Expenditures 2013 Highlights," 2013). The cost of health care spending greatly affects the way that individuals budget their spending. It is important the economy can adjust accordingly to individuals about whether health care spending is too much or not enough. Current Level of National Healthcare Spending The topic of healthcare spending in the United States is a controversial one, and most often, the populations' opinions doesn't always agree with those of policymakers. Getting health care spending under control is vital to the economic health of the government and the people of the United States. What makes healthcare expenditures so disgraceful is the large amount of money the government spends on healthcare each year versus the number of people without health care. The amount of money the U.S. government spends on health care each year doubles that...
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...440 Health Care Spending In our society today, heath care is one of the top major concerns within the United States. Many individuals do not always agree with the decisions made for health care, the more concerned issues are the increase and where the money will be coming from to pay the costs of increase. Patient’s costs has doubled more in the U.S than any other country along with leaving some people without health care. This paper will discuss health care expenditures, as well as spending is too much or not enough. This paper will also discuss whether or not the nation should add or cut in certain areas and why. How the public need for health care are financed and the percentage of expenditures they represent. Lastly, I will provide future economic needs of the health care system along with reasoning for addressing these needs, and envisions for financing these needs. The spending for health care uses a great deal of the economy revenue, the national studies that have been completed within the past decade clearly shows many U.S citizens will have to make decisions that are disconcerting based on their ability to obtain affordable health care. As health care cost has been on the rise for many years. The expenditures in the United States to health care rose above $2 trillion in 2008. This has affected many families and businesses as well as the budget for the public. Health care spending cost are increasing at a more rapid rate than the economy current state as a whole...
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...The Basic Social System Conceptual Scheme of Health Care There are four basic service components necessary for a healthcare system to be considered complete. These for components are as follows: Predominant "targets" of the health system at the time. Technology to handle predominant health problems. Social organization for health care. Involvement of people in their health care. In the following paragraphs we will look a little more in depth at these four components for healthcare systems and explain why these components are necessary in making healthcare complete. Predominant "targets" of the health system before the healthcare system came to the United States of America, healthcare was declared to be an isolated and to some extent an unsystematic compilation of services. When the health system was newly established in the United States it brought forth a sense of organization and the concentration to health care in which it had been missing up to that time. Technology to handle predominant health problems starting around the 1900's phase two in the health system brought medicine into a new technology. The practice of medicine that was performed was measured more of an unofficial compilation of unverified oversimplification and the intent to perform in a manner that would help patients, but as of today health is not something to make assumptions about that is why with the opening of John Hopkins Medical Center health care became more of science. The scientific method was introduced...
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...Finance in the healthcare industry can be a very tricky subject. The primary role of finance in the health services is to plan for, obtain, and make use of resources to increase the productivity and value of the business (Nowicki 2007). Finance is a very important part of the health care industry. It keeps everything on track and in order so that things operate successfully. Without the right person(s) helping to operate the place of business the company can be in a great deal of trouble. When I think of finance I think of cash. In today’s economy cash flow is at its all time low. More people are trying to cut cost and much as they can. This means less doctor visits and sometime not going to the doctor at all. Which means that if your health care business is use to seeing a certain amount of patients and that number suddenly stops that can put some jobs at jeopardy. The role of finance has increased in the healthcare industry. Like I stated previously cash flow is at an all time low. With the high demands of hospitals, long term care, nursing homes, special practices and assisted living, the need for healthcare and funding is growing daily. There is a different age group that is being more catered to due to the aging population around. Funding is necessary for all levels of healthcare organizations, and there are some governmental hospitals/facilities, non-profit, and privately funded that need to be aware of the fast paced changes that are being made financially in the world...
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...Healthcare Spending HCS/440 Healthcare Spending United States healthcare spending exceeds healthcare spending in any other country in the world. These increasingly high figures of healthcare spending cost are influenced by several different reasons. An aging population, illegal immigration, and technology advancements are some of the few influences on rising healthcare costs in America. It is imperative that health care costs are managed and soon because the government is finding it quite difficult to sustain everyone’s needs. In addition, healthcare reforms must be made to lessen healthcare costs before the quality of healthcare reduce in a drastic way. Healthcare spending has been on a continuous incline in America throughout the years. According to Center for Medicaid and Medicare Services, in the year of 2008 health care cost rose to $2.3 trillion in the United States; this was 4.4% higher than 2007 costs. Healthcare costs are averaging a little over %16 of the entire Gross Domestic Product (GDP). In 2008 Medicare spending increased 8.6% and Medicaid spending increased 4.7% in the same year. In addition, hospital stays physician rates, clinical visits, and prescription medications increased as well. 31% of a $1.6 trillion healthcare cost has been designated strictly for hospital stay care. Clinical and physician services are accountable for about 22% however, proposals from physicians account for a much vaster percentage of health care costs. Prescription medications...
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...Faces of Healthcare A cultural group is a self-defined group of people who share a commonality of cultural experience. Cultural groups may be defined by many types of commonality, such as ethnicity, religion, or physical commonality. It is important to take into consideration that culture is not tied simply to ethnicity, but goes way beyond the realm of race. Even within white America, there are numerous cultures. Culture can be broken down as far as the differences between the ages. The studies of health behavior in different cultural groups are and have been very important in today’s society. There are as many cultures in the United States as there are in the world. Cultural diversity in the medical field is, at times, greatly hindered because of religious beliefs, language barriers, and the hierarchies of diverse cultures and these have the propensity to affect the continuity of care for the patients. “More than ever before healthcare professionals are subject to dealing with a number of vast and various cultural diversities”. (Alva) These differences vary in as many ways as there are different ethnic groups in any particular area. Religious beliefs can hinder the nursing care of patients. There are many different religious beliefs in as many different religions. The religious belief most common in the United States, of course, is the Jehovah Witness who refuses transfusions. This religion has a strong belief in preserving the soul before the body. Other religions...
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...Motors employs about 266,000 people around the world. It manufactures its cars and trucks in 35 different countries. The famous brands under the umbrella of GM are Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling. In 2008, General Motors was the ninth largest publicly traded company in the world. In recent years the company has faced significant financial turmoils, including a 38 billion dollar loss in 2007. General Motors Today: From 1908 to 1976, it had grown expansively. But today its market share has gone down and together, with challenges posed by economic conditions, in the form of increasing healthcare costs and fuel costs and cut throat competition GM is facing a tough time in maintaining its profits. GM is deriving its 100% profits from financing cars and not from the sales of vehicles. Internal factors that account for this decline are the failure of the company to adapt to the changes in the environment such as the consumer preferences and technology, lack of differentiation applied to products and lack of effective cost leadership strategies to efficiently manage costs. Mission Statement: General Motors is devoted to be a leader in providing transportation products and services of such quality that its customers will receive superior value, its employees and business partners will share their success and their shareholders will receive a sustained return on their investment. Vision Statement: ...
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...Feasibility of Building a Health Retreat Center Memo To: Dr Wallace From: Hristo Hristov Date: April 27, 2012 Subject: Feasibility of Building a Health Retreat Center, 2012 This report is the result of an initiative triggered by the worrisome health-related statistics (2011) related to the declining physical and mental well-being of Bulgarian citizens. This is a private initiative that takes into account people’s natural inclination to improve their situation by resorting to effective and affordable means. The creation of a health retreat center seems to be a plausible option to solving the aforementioned problems. This is why I believe the executing of such a project in Varna, Bulgaria’s most prominent seaside resort, is a solution to people’s problems. The content of the report covers: (1) an analysis of nowadays overall health condition of Bulgarian citizens; (2) a suggestion as to how to successfully eliminate the existing problem and the specific “steps-by-step” ways to realize the project It is my hope that you will join me in this cause and be a part of this exclusive project that will surely bring about change in the lives of people. I will very much appreciate any help you could offer as a man of vision and experience. I can be reached at +359 997310153 or via email at h.hristov@yahoo.com. Thank you for your time, I am looking forward to hearing from you. FEASIBILITY OF BUILDING A HEALTH RETREAT CENTER ...
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...Reporting Practices and Ethics Paper Brandee Robinson HCS 405 Week 2 July 27,2015 Instructor Financial management and stability is a very important factor of every health care facility. Financial planning needs to be taken into account very accurate and deal with care as well as seriousness. It is important to keep everything that involves finances in a company recorded properly in order for it to function properly watching every move a company make financially. By doing this it will help to keep track of how a company is doing whether its good or bad. The financial planning also helps give the finance department a look inside the company to see where their money is going as to see and if they are have gained profits or suffered from a lost. From this information being provided a company can then decide if changes need to be made in order to avoid any more loss from within the company. Accounting in any company is the vital part of an organization. It is very important to have a good accounting team in the finance team. Why, because the finances is what runs the business, and without the tracking and upkeep of funding, a company cannot run properly. According to "Healthcare Financing And Accounting " (2015), “the great thing about working in accounting is that everybody counts”. This information pretty much states and says that it doesn’t matter what part of a health care facility you may work in, all employees are a vital part of the day. Financial management involves...
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...Chapter One 1. A. What are some of the industries in the healthcare sector? The major industries in the healthcare sector includes health services, health insurance, medical equipment and supplies, pharmaceuticals and biotechnology, and other (includes a diverse collection of organization ranging from consulting firms to educational institutions to government and private research agencies. B. What is meant by the term healthcare finance as used in the book? Finance, as the term is used within the health services industry and as it is used in the book, consists of both the accounting and financial management functions. C. What are the two broad areas of Healthcare Finance? Accounting as its name implies, concerns the recording, in financial terms, of economic events that reflect the operations, resources, and financing of an organization. Financial management or corporate finance, provides the theory, concepts, and tools necessary to help managers make better financial decisions. Certain aspects of accounting involve decision making, and much of the application of financial management theory and concepts requires accounting data. D. Why is it necessary to have a book on healthcare finance as opposed a generic finance book? The reason is that while all industries have certain individual characteristics, the health services industry it truly unique. 2. What is the difference between a business and a pure charity? A business such as a hospital or medical...
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...aspect and technology has also changed healthcare. More money is being spent on technology which allows better treatment for patients. Advanced technology has led to better health care quality and the reduction of medical errors. There are social dynamics that also helped shape healthcare. The changes in demographic across the country play a major role in the type of health care that is needed and available for a specific group of people depending on where they stay and their income. Some of the major fluctuating and daunting challenges in health care management are operating cost, government mandate and regulation, and the new system put in place to comply with the ICD-10 diagnosis code system. All of these things play a major role in health care and the changes that are happening everyday. The amount of people who are uninsured in the United States is substantial. Most people who do not have insurance are low income working families. In most instances, the adults are the ones who are not insured but the children are. The reason for the rise of uninsured Americans is the high price of health insurance and the loss of jobs due to recession. “Growth in Uninsured” (2005) states that at a November 4 policy briefing examining the latest health coverage trends and the implications for the nation’s healthcare safety net, the Kaiser Commission on Medicaid and the Uninsured profiled the growing uninsured population and portrayed the healthcare safety net as increasing straining...
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...resources for Louis C. Gapenski, PhD, Fundamentals of Healthcare Finance, Second Edition. The complete instructor resources include Test Bank PowerPoint slides Sample course syllabus Solutions to the end-of chapter questions and problems Solutions to the online cases This sample includes the following resources for Chapter 2: Answers to end-of-chapter discussion questions PowerPoint slides If you adopt this text, you will be given access to the complete materials. To obtain access, email your request to hapbooks@ache.org and include the following information in your message: Book title Your name and institution name Title of the course for which the book was adopted and season course is taught Course level (graduate, undergraduate, or continuing education) and expected enrollment The use of the text (primary, supplemental, or recommended reading) A contact name and phone number/e-mail address we can use to verify your employment as an instructor You will receive an e-mail containing access information after we have verified your instructor status. Thank you for your interest in this text and the accompanying instructor resources. Copyright and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Business Basics Chapter 2 8/1/12 ANSWERS TO END-OF-CHAPTER QUESTIONS 2.1 a. A business is an entity that obtains financing from the marketplace, uses those funds to buy assets...
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...HealthCare System in CHINA HADM 5032 Amrutha Kurakula 03/29/2015 UHCL HONESTY CODE “I will be honest in all my academic activities and will not tolerate dishonesty.” Submission of this exam/assignment certifies my compliance with the UHCL Honesty Code that I signed at the start of the semester. I pledge on my honor that I have complied with this policy, inclusive of not acquiring unauthorized information or assistance, not providing others with unauthorized information or assistance, avoiding...
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