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Health Care Organizations: Finance

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Please help with some information regarding this assignment, and this is not an essay:

"identifies forces that can impact a healthcare organizations financial position. Critically discuss on how payer mix, uninsured patients, and the economy can impact a healthcare entity's financial position."

400 words

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There are several forces that can impact health care organizations' financial positions. The implementation of the Obama Health Care policy will have a strong impact on the financial positions of health care. There are limits about the profits that may be earned by the organizations. As more people avail themselves of affordable insurance, it means there will be lower margins for health care facilities. There are stringent reimbursement policies for low cost insurance. With expansion of Medicaid and CHIP there will be lower margins. The health care organizations will barely be able to cover their operating costs. The health care institutions will have difficulty in making capital investments. The new policy prescribes that more cannot be charged from patients who are regularly or chronically sick. The ...

Solution Summary

The answer to this problem explains health care organization financial pressures. The references related to the answer are also included.

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Financial management for Health Care Organizations: Net income, cash flow, liquidity

Attached is a copy of a excel sheet for question #7.

Unit 2 Written Assignment: Course Material: 5 Finkler, S. A. Financial Management for Public, Health, and Not-For Profit Organizations. Upper Saddle River, NJ: Prentice Hall, 2000, 470. 6 Gapenski, L. C. Healthcare Finance: An Introduction to Accounting and Financial Management. Chicago, IL: Health Administration Press, 1998, 107.

Answer the following:

1. Do not-for-profit health care organizations earn a profit (assuming that they are financially successful)? If so: a. How do they show it on the income statement? b. What do they do with any such profit?

2. What is the difference between net income and cash flow?

3. Using the following financial statement information for four not-for-profit clinics, fill in the missing values labeled a through h:

December 31, 1997: Clinic A Clinic B Clinic C Clinic D
Assets $ 80,000 $100,000 a $150,000
Liabilities $50,000 b $ 75,000 c
Equity d $ 60,000 $ 45,000 $ 90,000
December 31, 1998:
Assets e $130,000 $180,000 f
Liabilities $ 55,000 $ 62,000 g $ 80,000
Equity $ 45,000 h $110,000 $145,000

4. Explain why financial ratios are more meaningful for financial analysis than individual entries.

5. What is meant by the term "liquidity" as applied to an organization's financial health, and what are two ways it is measured?

6. Do the following categories of ratios get their information from the balance sheet, the income statement, or both? a. Liquidity Ratios b. Profitability Ratios c. Turnover Ratios d. Capitalization Ratios

7. Using the financial statements of St. Ann's Hospital on p. 88 of the Neumann text (problem 3-11), compute the following ratios:
a. Current Ratio
b. Operating Margin
c. Return on Assets
d. Long-Term Debt Ratio

What do the results tell you about the financial health of the hospital?

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