HCA 240 Assignment 3 Determining Financial Viability
HCA 240 Assignment 3, Determining Financial Viability
The purpose of this assignment is to determine the financial viability of a health care facility. The assignment will focus on determining the profit margin, break-even point, and output levels of a health care facility.
In order to complete this assignment, the following methods were used:
1. A survey was conducted by asking employees at different facilities about their salary and benefits
2. Data from local hospitals was gathered using resources such as the internet and interviews with hospital administrators
3. Information about other companies in the same industry was also gathered using resources such as the internet and interviews with company executives
Assignment 3: Determining Financial Viability
1. Describe the relationship between a nonprofit organization’s mission, financial health, and its ability to provide service.
2. What are some of the challenges that a nonprofit organization may face as it attempts to achieve financial viability?
3. How can a nonprofit organization identify and manage these challenges?
4. Describe at least three strategies for enhancing the financial viability of a nonprofit organization.
5. Discuss why each strategy you have selected would be effective in enhancing the financial viability of a nonprofit organization.
The purpose of this assignment is to determine financial viability.
Financial viability is a crucial part of any business, and it can be especially important for new companies. Since they have not yet established a proven track record, they must be able to show that they can grow and thrive in order to attract investors or secure loans.
This assignment will use the following criteria:
-The company’s ability to meet its short-term obligations (over the next year)
-The company’s ability to meet long-term obligations (over the next five years)
-The company’s growth potential over time
-The potential for profitability
Determining Financial Viability
The purpose of this assignment is to determine the financial viability of a nursing home. The company is called Shady Hills Nursing Home, and it is located in the town of Shady Hills. The facility currently has 100 residents who are being cared for by a staff of 15 nurses and an administrator. The facility has been open for 20 years, and in that time, it has had no major complaints from the state or its residents.
The nursing home has been losing money over the past few years. In its first year of operation, it had no problem turning a profit; however, in recent years that has not been the case. In fact, last year they lost $5 million dollars! There are many reasons why this happened including:
-Expensive advertising campaigns aimed at bringing new patients into the facility but which ended up costing more than they earned back in revenue from those patients
-A decrease in Medicare reimbursement rates due to budget cuts passed by Congress during their last term in office (this happened despite promises made by President Obama during his campaign four years ago)
The purpose of this assignment is to determine the financial viability of a small business. The three main areas that will be addressed are:
1. The owner’s personal finances, including income and expenses
2. Cash flow statement, including sources and uses of funds, working capital and cash flow forecasts
3. Analysis of the company’s operating performance and analysis of its financial health using ratios
The nursing home industry has evolved over time to meet the needs of an aging population. From the 1980s to the present, there has been a significant increase in demand for nursing homes and related services. The current population of people aged 65 years or older is expected to double by 2050 (U.S Department of Health and Human Services, 2013). With this increase in demand, there are also more concerns surrounding financial viability within this industry. This paper will examine these concerns and how they can be addressed through strategic planning efforts by administrators.
The U.S Department of Health and Human Services states that there were approximately 1,400 skilled nursing facilities (SNFs) operating in 2015 (U.S Department of Health & Human Services, 2015). These facilities provide long-term care services to patients who are unable to care for themselves due to illness or injury (U.S Department of Health & Human Services, 2015). In addition to providing care for patients with physical limitations, SNFs also provide rehabilitation services such as physical therapy and occupational therapy (U.S Department of Health & Human Services, 2015). Many SNFs also offer medical services such as hospice care and palliative care (U.S Department of Health & Human Services, 2015).
The current situation
This assignment is designed to help you grasp the fundamentals of financial viability. The assignment is divided into three parts.
Part 1: Financial Planner
The first part of this project will be to create a full financial planner for a household in which you are familiar, such as your own family or a friend’s family. Your goal is not just to create a plan, but also to include realistic information about the family’s income and expenses, assets and liabilities. The planner should include all relevant information about the client’s assets, liabilities, income sources and expenditures. Create a spreadsheet that includes the following:
1) Income from wages/salary/rental property
2) Other income
3) Retirement accounts/pensions (amounts contributed by employer)
4) Assets (value of each asset)
5) Liabilities (total amount owed on each debt)
HCA 240 Assignment 3 Determining Financial Viability