Week 4 Janet McGonagle 8.1 Consider the following 2001 data for Newark general hospital (in millions of dollar) | Static Budge | Flexible Budget | Actual Results | | | | | Revenue | $4.7 | $4.8 | $4.5 | Costs | 4.1 | 4.1 | 4.2 | Profits | 0.6 | 0.7 | 0.3 | A: Calculate and interpret the profit variance Profit variance = Actual Profit – Static Profit = $3000, 000.00 - $600,000.00 = $-300,000.00 The hospital is in the red of $300,000.00 less for profit than expected. (Unfavorable)
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Cinema 101 Monday May 27, 2014 Growing Apart: Distance and Loss in Citizen Kane Citizen Kane (Orson Welles, 1941) is an American drama film that narrates the story of a newspaper magnate who gained worldly success in his life, but he lost connection with people around him during this process. With the help of a series of flashbacks, the film illustrates Kane’s personal life. The film starts with the scene where Kane is on his deathbed and says the word ‘Rosebud’ before dying. A newspaper reporter
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Option #1: Budgeting for Radiology Facility The radiology department at Best Medical Care is developing a budget for DRG 250: Fracture, Sprain, Strain, and Dislocation of Forearm, Hand, and Foot. This year the department saw 2,200 admissions for DRG 250 analyzed in the following way: 40% for a hand X-ray (which takes five minutes); 30% for a foot X-ray (which takes 15 minutes); and 30% for a forearm X-ray (which takes 15 minutes). The budget committee is projecting a 12.1% change in DRG 250 for
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reimbursement rates. Because of competition and insurance company dominance most healthcare providers are price takers. Price takers typically will take the price as a given and focus on management to ensure profitability of healthcare services. If a provider dominates the market with differentiated services such as outcomes, convenience then the provider can set market prices on services or are price setters. In the healthcare arena, the status between price setter and taker can change quickly or can
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This is a sample of the instructor 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
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industries in the healthcare sector? Healthcare services (ex. hospitals), Health insurance (makes most of the payments to the health service providers), Medical equipment and supplies (maker of medical/diagnostic equipment), Pharmaceuticals and biotechnology (develop/market drugs/therapeutics), and "other" (which includes consulting, educational, government, and research agencies) b. What is meant by the term healthcare finance as used in this book? Healthcare Finance consists of both
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1- Question and Answers 1.1 a. What are some of the industries in the healthcare sector? Some of the industries in the healthcare sector are health insurance, pharmaceuticals and biotechnology, medical equipment and supplies and health services. Others include education institutions, government and private research agencies. b. What is meant by the term healthcare finance as used in this book? Healthcare finance is a term used in this book to describe accounting and financial management
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1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2014 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit? The below pro forma profit and loss statement states that the clinic is currently operating at a loss of $3,173 per month, considering that subtraction of fixed and variable costs. The contribution margin per month totals $48,138 or divided out
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flow, would be needed to accumulate $20,000 at the end of year 5? (Assume that the cash flows for Years 1 through 5 remain the same). Cash Flow today: $5282.05 d) Time value analysis involves either discounting or compounding cash flows. Many healthcare financial management decisions – such as bond refunding, capital investment, and lease versus buy – involve discounted projected future cash flows. What factors must executives consider when choosing a discount rate to apply to forecasted cash flows
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Health Services Finance I Problem 17.4: a. Perform a Du Pont Analysis on BestCare. ROE = (Total Margin)*(Total Asset Turnover)*(Equity Multiplier) (Net Income/Total Equity) = (Net Income/Total Revenue)*(Total Revenue/Total Assets)*(Total Assets/ Total Equity) ($1,218,000/$2,118,000) = ($1,218,000/$28,613,000)*($28,613,000/$9,869,000)*($9,869,000/$2,118,000) BestCare HMO ROE = 4.25% * 2.9 * 4.66
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