Assignment 2: Source of Revenue

Assignment 2: Source of Revenue: Viability Use the balance sheet and
statement of income you downloaded for Ascension Health during Week 3.
In a Microsoft Excel spreadsheet, prepare a vertical analysis of the
company for the years 2013 and 2014 and a horizontal
analysis from
2013 (base year) to 2014 (subsequent year). Discuss your findings. Here
are a few, but not all, the questions you should consider. •Is Ascension
Health growing? •What line items reflected the largest-percentage
increases and/or decreases? •What
is the financial impact these
changes have on the company's financial viability currently and in the
future? By Tuesday, December 8, 2015, submit your 2–3-page report to the
W4: Assignment 2 Dropbox. Assignment 2: Business Plan for a Healthcare
Organization
In Week 5, you need to work on two main tasks: The first
task is: Source of Revenue: An Increase in the Medicare Patient
Population The president of Gentiva Health Services is considering
increasing her number of Medicare patients served next year. However,
to
do so she must begin to use RNs for client visits, which Medicare
reimburses at $45 per visit. An RN costs $35 per hour versus the current
cost of $15 for an LPN or nurse’s aide. The president believes she can
increase her patient visits by 15% by accepting
Medicare patients.
She is also aware that if she increases her Medicare patients, the
company’s administrative costs will increase by approximately $10,000
per year because of the claims file complexity. Using the Gentiva Health
Services Statement of Income
http://www.dailyfinance.com/quote/nasdaq/gentiva-health-services-inc/gtiv/sec-filings,
use the following volumes for your calculations: Volume for the year:
•Flexible budget: 6,000 visits •Static budget: 5,945 visits •Actual
budget: 5,889 visits Prepare a
two-page report that addresses the
following: 1.How many more visits will the company generate if it
accepts Medicare patients? 2.What would be the estimated profit or loss
associated with the Medicare service line? 3.Would you recommend that
Gentiva Health
Services increase its number of Medicare patients
served? Why or why not? The second task is: Business Plan Review the
quarterly report and develop a business plan for the organization for
its upcoming financial year. Be sure to include the following in your
organized
business plan: •Organization segment •Marketing segment •Financial
segment •Projected cash flow statement •Projected income statement
•Projected balance sheet Feel free to take liberties with information
needed that is not available in the report.
You may find the
quarterly report at
http://finance.yahoo.com/news/gentiva-health-services-reports-third-221500117.html
Include all required tasks for this assignment in a Word document. By
Tuesday, December 15, 2015 , submit the Word document to the W5:
Assignment
2 Dropbox.