About this Assignment
This course explores healthcare specific financial policies and issues, analytical framework and economic transformation for financial decisions (such as investment and working capital), methods of financial management, insurance coverage and financing. In addition, the course focuses on the ability to apply economic and population health models to address health service issues and problems.
You will use the knowledge gained in this course to financially structure and evaluate the opening of a private primary care medical practice with one physician provider. You will prepare an operating and capital budget as well as a narrative summary of at least1,000 wordsto show your financial findings and recommendations. You will provide supporting documentation to support your findings and recommendations.
Prior to writing your narrative summary you will need to prepare an operating and capital budget for the project. The well-prepared operating and capital budgets will demonstrate a keen knowledge of the market, pricing, activity, revenues, expenses, and potential impact on cash-flow and/or profitability. The capital budget will similarly demonstrate an awareness of the capital items and associated costs for project start-up.
- Prepare an annual statistical report that includes the following:
- Volume of patient visits
- Revenues (percentage of reimbursement from Medicare, Medicaid, Commercial Insurance and Self Pay)
- Expenses (Labor, Equipment, Supply, Overhead)
- Provide your assumptions to justify all volumes, revenues and expenses
- Prepare a three-year operating budget that includes the following:
- An estimate of revenue each year
- An estimate of expenses for each year
- The cash flow (negative or positive) generated from revenues and expenses
- Prepare a start-up capital budget listing the equipment you may need for this project including the cost and annual depreciation
- From your operating budget calculating the following:
- Projected cash flow over 3 years
- Break-even analysis
- Internal rate of return (IRR)
- Net present value (NPV)
- From your calculations, evaluate the financial risk involved with this project and make a recommendation as to whether this project is financially viable.
- Prepare a1000-word minimumnarrative summary of your financial findings and recommendations. You will provide supporting documentation to support your findings and recommendations.
Formatting & Sources
Please write your paper in the APA format. As part of your research, you may refer to the course material for supporting evidence, but you must also useat least three credible, outside sourcesand cite them using APA format as well. Please include a mix of both primary and secondary sources, with at least one source from a scholarly peer-reviewed journal. If you use any Study.com lessons as sources, please also cite them in APA (including the lesson title and instructor's name).
- Primary sources are first-hand accounts such as interviews, advertisements, speeches, company documents, statements, and press releases published by the company in question.
- Secondary sources come from peer-reviewed scholarly journals, such as the Journal of Management. You may use like JSTOR, Google Scholar, and Social Science Research Network to find articles from these journals. Secondary sources may also come from reputable websites with .gov, .edu, or .org in the domain. (Wikipedia is not a reputable source, though the sources listed in Wikipedia articles may be acceptable.)
If you're unsure about how to use APA format for your paper and sources, please see the following lessons:
Grading Rubric
Your essay will be graded based on the following rubric:
Category |
Unacceptable (0-1) |
Needs Improvement (2-3) |
Good (4) |
Excellent (5) |
Total Possible Points |
|---|
Annual Statistical Report (x3) |
Presents volume estimations that are neither logical nor linked with any external research. |
Presents cursory volume estimations that appear not to be linked with any external research. |
Presents volume estimations, incorporating and applying external research and support as validation but lacking general depth. |
Expertly presents volume estimations, systematically incorporating and applying appropriate external research and support as validation. |
15 |
Operating & Capital Budgets (x5) |
Cursory and very limited financial budgets that demonstrate no application to the proposed project and do not expand from the original template. |
Average budgets that demonstrate some uniqueness, but fail to demonstrate much extra effort to modify the documents to the unique program. |
Generally comprehensive budgets that demonstrate most aspects of the program's uniqueness. |
Comprehensive and expertly- created budgets that demonstrate significant changes from the template to apply the unique aspects of the program to the resultant financial budgets. |
25 |
Financial Risk Calculations (x5) |
Cursory and very limited calculations that demonstrate no application to the proposed project and do not expand from the original template. |
Average calculations that demonstrate some uniqueness, but fail to demonstrate much extra effort to modify the documents to the unique program. |
Generally comprehensive calculations that demonstrate most aspects of the program's uniqueness. |
Comprehensive and expertly- created calculations that demonstrate significant changes from the template to apply the unique aspects of the program to the resultant risk calculations. |
25 |
Recommend Project (x2) |
Alludes to a recommendation, but does not explicitly take a stand. |
Makes a recommendation, but does not seem to adequately link the other parts of the memo to the recommended action. |
Makes a clear and convincing recommendation that is grounded in and effectively integrates the other sections of the memo. |
Makes a clear and convincing recommendation, expertly-grounded and drawn from other parts of the memo, making the recommended course a 'no-brainer.' |
10 |
Narrative Organization (x1) |
General lack of any organization or cohesion throughout the narrative. |
Organized and presented in a fashion that could be improved upon and not addressing the uniqueness of the program. |
Generally well-organized and presented including most of the essential elements, addressing the uniqueness of the program. |
Superbly organized and presented, including all of the essential elements, expertly applying the uniqueness of the program. |
5 |
Before You Submit
When you complete your assignment, we suggest taking some time to check for any errors or to add any finishing touches. We also suggest that you use online plagiarism checkers such asPlagScanorDupliCheckerto make sure that your assignment is not too similar to any existing materials. Plagiarized submissions will NOT be graded.