FINANCIAL MANAGEMENT

ASSIGNMENT 1

· Describe the following healthcare service settings and predict which will have the most impact on our national economy in the next five years: hospitals, ambulatory care, home healthcare, long-term care, and integrated delivery systems.

As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Your initial posting should be addressed at 300-500 words

Assignmetn 2

· Select two different types of HCOs and consider the most positive and most negative effects of using the cash versus accrual accounting method for the business.

· Discuss the effect of the choices on revenue recognition and matching principles.

· Compare and contrast the following items, pointing out their key elements: gross revenue and net revenue, patient service revenue and other revenue, and charity care and bad debt losses on the income sheet

As in all assignments, cite your sources in your work and  provide references for the citations in APA format.

Your initial posting should be addressed at 300-500 words.

Assignment 3

Review the  CVP-graph PDF  for more information on CVP graphs and how to read them. Assuming the graphs are drawn to the same scale, consider the break-even charts—cost-volume-profit (CVP) graphs—below for two competing providers operating in a fee-for-service environment. On the basis of your understanding of variable cost rate, per-unit revenue, contribution margin, fixed costs, and the CVP graphs above, answer the following questions:

· Explain how the CVP graphs would change if the providers were operating in a discounted fee-for-service environment.

· Explain how the CVP graphs would change in a capitated environment. Evaluate which provider is in the best position to grow its business.

· Provide reasons for and evidence in support of your responses.

As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Your initial posting should be addressed at 300-500 words.

Assignment 4

The capital asset pricing model , or CAPM, is used to price an individual security or portfolio. The general idea behind CAPM is that investors should be compensated in two ways, for the time value of their money and risk incurred. The model helps investors calculate risks and what type of return they should expect on their investment. The time money value is represented by the risk-free rate, usually a 10-year government bond yield, and compensates the investors for placing money in an investment over a period of time. That is added to the other half of the formula which represents risk. It calculates the amount of compensation the investor needs for taking on additional risk. This is done by taking a Beta, which measures a stock's volatility, and multiplies by its premium. The premium is calculated by subtracting the risk-free rate of return from the expected return of the market. For example, the expected return of a stock can be figured out in the following way using a model. If the risk-free rate is 3% the Beta or risk measure of the stock is 3 and the expected market return over the period is 11%. The stock is expected to return 27%. In short, if the expected return does not make the risk worth it, the investment should not be made.

Respond to the following questions:

· You are the chief financial officer (CFO) of a multi-physician clinic. Do you see weaknesses or strengths in the capital asset pricing model (CAPM)? Explain your response and support it with examples. Include a consideration of the small market line (SML).

· Your chief executive officer (CEO) asks you to decide between debt and equity financing. Explain which the best option is. Discuss the factors that influence your decision.

As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Your initial posting should be addressed at 300-500 words.

Assignment 5

 For multihospital systems, scenario analysis has both advantages and disadvantages.

· Assess whether the advantages or disadvantages are greater.

· Assess whether financial analysis should or shouldn’t play a dominant role in capital budgeting decisions.

· Provide reasons for and evidence in support of your responses.

As in all assignments, cite your sources in your work and provide references for the citations in APA format.

· Your initial posting should be addressed at 300-500 words