SKF Primary Care Clinic is deciding whether to purchase MRI equipment that would enable it to perform MRI imaging services in-house rather than sending its patients to its competitor's hospital three miles away. From a financial position, if SKF were to make its decision without using net present value analysis, the clinic would need to know (or at least reasonably estimate) which of the following information?
A. unavoidable fixed cost, volume, variable cost and indirect costs
B. variable costs, volume, avoidable fixed cost and total revenue
C. total unit cost, indirect costs, profit and volume
D. revenue per unit, indirect costs, volume and total revenue
E. avoidable fixed costs, revenue per unit, volume and contribution margin
You are correct. Most often, management would use NPV analysis combined with other analyses to determine if the in-house services provided would be an advantage to the ...
This solution provides the correct answer with explanation to the net present value analysis question listed, regarding SKF Primary Care Clinic. The answer is thoroughly discussed.
Collecting Receivables in Healthcare organizations
Healthcare financial managers have searched for ways to collect receivables faster since credit transactions began. Some of the techniques briefly described in McLean for speeding the conversion of patient accounts into cash are the lock box system, selling patient accounts to 3rd parties, hiring collection agencies, and securitizing receivables.
In your response please reference the attached chapter from McLean, Robert A. (2003). Financial Management in Health Care Organizations (2nd ed.). Albany, NY: Delmar Publishers.
Which of these four options would you recommend for a hospital? Why?
Are other options available to HCOs to accomplish this conversion? Evaluate these other techniques.View Full Posting Details