week 5 peer response
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hmgt_320__week5_peer_respo.docx
· Brittany Brown posted Feb 10, 2016 10:54 AM
Good Morning,
How important is budgeting in running a health care company? How often should budgets be prepared?
Budgeting is required for any company and especially for a heath care company. Healthcare is a good that has no physical substance. Unlike a grocery store that can look and see how many apple have been sold. I have seen many small town medical clinic go underwater because they did track and budget their expenses.
A health care company has so many moving parts. The billing to health insurance then to patient and wait for payment from the patients. In my current job I have six different budgets that need managed. I do a review of my budgets once a month and then anytime we have an expense or a bill is paid.
These types of budgets have so many complex parts to them that it can be easy to make a mistake. If a mistake no one want to be “That Guy” that made a mulita million dollar mistake. A lot of times I triple check myself to avoid this.
V/r
Brittany Brown
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· Erica Kaltenbach posted Feb 10, 2016 4:24 PM
3) REVISED: What factors indicate a company is not doing well. Based on the link below, identify a company who is having trouble in one of these areas and describe their financial situation based on the indicators discussed.
http://quickbooks.intuit.com/r/financial-management/7-signs-your-company-has-poor-financial-health
The factors that indicate if a company is not doing well are:
1. Debt levels – the debt-to-quality ratio and the debt- to-assets ratio
2. Review accounts receivable
3. Check your current capital
4. Review your company’s current cash ratio
5. Take stock of your sales pipeline
6. Keep an eye on your profit margin
7. Look forward, not just backward
One company who is having trouble with their debt levels is Sears. According to CNBC, the CEO is selling any assets that are available because their revenue is minimal at best. The company plans to sell their auto centers which are worth approximately $2.5 billion but unfortunately the company’s debt is estimated to be approximately $2.8 billion, leaving no financial gain for the owner.
Reference:
Berr, J. (2013, December 27). Five Companies That May Not Survive Past 2014. Retrieved February 9. 2016, from http://www.cnbc.com/2013/12/27/five-companies-that-may-not-survive-past-2014.html
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· Frederina Grant posted Feb 14, 2016 10:11 AM
What factors indicate a company is not doing well.
One of the major indicators is not taking stock of sale pipeline.
Knowing how many leads the business currently have in their pipeline as well as the status of these leads is a great indicator of a business' poor or good financial health.
A post in the Baltimore City Paper stated "a 45 year-old network of medical clinics that treats tens of thousands of poor people in Baltimore, is in financial trouble". This company has 10 locations through out the Baltimore City metropolitan area. Because of financial difficulty some of these locations has been reduced in staffing and services with a possibility of closing. There has numerous expansions, including the application for JACHO Accreditation into the PCMH Program.
Personally I think upper management has over extended the financial range of the corporation. because of personal involvement with this organization I have included the link where the information can be view at will.
7 Signs Your Company Has Poor Financial Health
Freddie
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