The financial decisions that a health care organization makes today can have far-reaching consequences for its future survival, from enabling its providers to better deliver care and services to...

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The financial decisions that a health care organization makes today can have far-reaching consequences for its future survival, from enabling its providers to better deliver care and services to patients to supporting the organization’s ongoing clinical research initiatives to facilitating the essential functions and processes its professional staff performs on a daily basis. To prepare for this Application Assignment, review the information on value realization, return on investment analysis, and the use of cost information to make special decisions in health care organizations presented in this week’s Learning Resource readings, as well as the information on capital investment analysis and return on investment—including financial (revenue-producing) versus non-financial (non-revenue-producing) return on investment--the presenters discuss in this week’s Course Media. To complete this Application Assignment, write a 3- to 4-page paper in which you:

  • Describemethods of analysis all organizations commonly use to make financial decisions, including at least two methods used to analyze capital investment decisions and at least one method used to make special decisions (i.e., decisions that an organization makes on an as-needed basis).
  • Differentiate between financial returns on investment (i.e., those with tangible benefits) andnon-financial returns on investment (i.e., those with intangible benefits), supporting the differentiation with two examples of each—withone example drawn from health care in general and the other example drawn specifically from health information technology.
Yourwritten assignments must follow APA guidelines. Be sure to support yourwork with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate. Refer to the Pocket Guide to APA Style to ensure your in-text citations and reference list are correct.
Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
Investment Analysis - Health care Organization 1
Investment Analysis - Health care Organization
Investment Analysis - Health care Organization 2
Introduction:
For any for-profit or non-profit organization, whether in health care, farming or computer
services, the total inflow of money must exceed the cumulative outflow, or the organization
ceases to exist.
A physician may or may not think of her career in financial terms. People are often
attracted to medicine at an early age and consider it a job where they can help people, deal with
the latest scientific advances, and not wo
y too much about money. On the other hand, aspiring
doctors also know that medical school takes a long time, costs a lot, and provides better than
average incomes. Junior physicians wo
y about paying back school loans and how difficult it is
to start a practice, so many of them work on salary for a clinic or a hospital for a while to
accumulate funds. Conversely, senior physicians are often trying to extract capitalized value
from their successful practices and patient goodwill as they get older and no longer want to work
so many hours. In medicine, unlike real estate or banking, finance is not the main interest. Yet
without financing a doctor cannot set up a practice or keep the door open any better than a bank
or shopping mall. The development of financial institutions and intermediaries such as
guaranteed loans, tax-exempt municipal bonds, insurance and reinsurance, and the use of venture
capital to finance biotechnology research, has been crucial to the growth of modern medicine.
The returns on medical education are estimated from the increased annual earnings,
elative to a person’s opportunity cost, that flow from the decision to go to medical school. The
costs are all the things that are given up, which includes tuition, but mostly the forgone earnings
and leisure from working 80 hours a week without pay in medical school or for below-market
wages during residency. Real returns (after adjustment for inflation) on financial assets have
Investment Analysis - Health care Organization 3
historically been about 1 to 3 percent for savings accounts and treasury bonds and 3 to 6 percent
for stocks, which are a bit riskier.
Health care organization:
A hospital is the financial opposite of an insurance company in a significant sense, the
timing of cash flows. A hospital must bo
ow money to build a new surgical center and pay the
wages of nurses and technicians while it waits for reimbursement.
Considering the case of NHS, Different cost reports that will be taken into account in
NHS, will be costs pertaining to the expenses, medicines, services that are rendered to the
patients, investmenting different equiment.
The efficiency and...
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