MHA 612 Financial & Managerial Accounting
The Report describes a proposal for the group of 20 of doctors with regard to the creating a hospital. Due to the 500,000 population of the city $100 million dollars would actually be a great start. Because the facility would be located 30 miles from the downtown area it would allow the facility to attract patients without being crowded. On the downside this affects its financial position and market condition because of distance. A lot of patients are not able to get to the doctor due to the high gas prices. Using various strategies, such as looking into ways to connect with public transportation to deal with this problem and gain a greater patient clientele. Along with transportation and money issues there might also be legal issue that we have to take into consideration. Also finding ways to either merge with other healthcare organizations to help generate revenue would be a good idea in helping run this hospital.
Strategic planning and capital planning are both essential to the future success of any institution. Although both strategic and capital planning are two separate processes, they can yield detrimental results. Strategic goals that are not financially tested are most likely to fail. On the other hand, when capital expenses are made without a strategic plan, an organization may not have the capital needed to pursue revenue-generating opportunities. To set financially sound strategic objectives, healthcare organizations must marry the strategic and capital planning processes.
As a consultant helping management consider various ways to contain the rising costs of health care is a complex process. During the decisions making process it is useful to examine the patterns of spending on health care throughout the United States to aid in deciding on how to distribute the many expenses in healthcare while maintaining a strategic budget.
References: Cleverley, W., Cleverley, J., & Song, P., (2011). Essentials of Health Care Finance (7th ed.).Sudsbury, MA: Jones and Bartlett Publishers. Giovanni C., Antonio C., Sergio F., & Giuseppe T. (2012). Linking Six Sigma to simulation: a new roadmap to improve the quality of patient care. International Journal of Health Care Quality Assurance, 25(4), 254-273. Retrieved May 8, 2012, from ABI/INFORM Global. (Document ID: 2645996811). Patterson, J. G. (1995). In Keppler K. (Ed.), Benchmarking basics: Looking for a better way. Boston, MA. USA: Course Technology Crisp. Retrieved from http://site.ebrary.com/lib/ashford/Doc?id=10058806&ppg=9 Pitofsky, R. (1996, February). Federal Trade Commission. Prepared statement presented before the Committee on the Judiciary United States House of Representatives. Squires, D. (2012). Explaining High Health Care Spending in the United States: An International Comparison of Supply, Utilization, Prices, and Quality, The Commonwealth Fund. Unknown Author. (2010, July 6). Why Merge? [Web log post]. Retrievedfrom http://www.smallbusinessnotes.com/managing-your-business/why merge.html U.S. Federal Trade Commission, Bureau of Consumer Protection. (1914). Retrieved from http://www.ftc.gov/bcplindex.shtml.