Assignment: Healthcare Finance
A. The Role of Financial Statements
Understanding basic accounting principles is imperative to the health care manager role. Reading a balance sheet and recognizing the importance of cash flow are skills that are compulsory to this function. With this in mind, discuss the following:
1) Discuss the most important headings in a balance sheet and what the summary numbers mean.
2) Explain 4-5 reasons why cash flow is important to a healthcare organization.
B. Understand How Reimbursement Contributes to the Need for Cost Containment
You are the manager in a healthcare organization, and you have been directed to come up with a plan to cut your budget by 5%. Discuss the following:
1) What expenses will you cut? Justify the cuts you choose.
2) Describe how these cuts will affect patient-centered care.
• Include both positive and negative effects.
Provide at least 1 reference for this discussion.
C. Analyze the Basics of Financial Principles
You are the chief financial officer (CFO) for an organization and need to discuss with fellow C-suite executives that cost cutting is not the only answer to profitability. Prepare for the next manager's meeting by responding to the following prompts:
1) Explain how a capital budget and a return on investment contribute to sustainable growth.
2) Clarify the role that risk analysis plays during capital investment decision making.
Provide 1 reference that discusses cost containment and patient care.
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.