01 Jul Prepare a 1000-word minimum narrative summary of your financial findings and recommendations
This course explores healthcare specific financial policies and issues, analytical framework and economic transformation for financial decisions (such as investment and working capital), methods of financial management, insurance coverage and financing. In addition, the course focuses on the ability to apply economic and population health models to address health service issues and problems.
You will use the knowledge gained in this course to financially structure and evaluate the opening of a private primary care medical practice with one physician provider. You will prepare an operating and capital budget as well as a narrative summary of at least 1,000 words to show your financial findings and recommendations. You will provide supporting documentation to support your findings and recommendations.
Prior to writing your narrative summary you will need to prepare an operating and capital budget for the project. The well-prepared operating and capital budgets will demonstrate a keen knowledge of the market, pricing, activity, revenues, expenses, and potential impact on cash-flow and/or profitability. The capital budget will similarly demonstrate an awareness of the capital items and associated costs for project start-up.
Prepare an annual statistical report that includes the following:
Volume of patient visits
Revenues (percentage of reimbursement from Medicare, Medicaid, Commercial Insurance and Self Pay)
Expenses (Labor, Equipment, Supply, Overhead)
Provide your assumptions to justify all volumes, revenues and expenses
Prepare a three-year operating budget that includes the following:
An estimate of revenue each year
An estimate of expenses for each year
The cash flow (negative or positive) generated from revenues and expenses
Prepare a start-up capital budget listing the equipment you may need for this project including the cost and annual depreciation
From your operating budget calculating the following:
Projected cash flow over 3 years
Break-even analysis
Internal rate of return (IRR)
Net present value (NPV)
From your calculations, evaluate the financial risk involved with this project and make a recommendation as to whether this project is financially viable.
Prepare a 1000-word minimum narrative summary of your financial findings and recommendations. You will provide supporting documentation to support your findings and recommendations.
Formatting & Sources
Please write your paper in the APA format. As part of your research, you may refer to the course material for supporting evidence, but you must also use at least three credible, outside sources and cite them using APA format as well. Please include a mix of both primary and secondary sources, with at least one source from a scholarly peer-reviewed journal. If you use any Study.com lessons as sources, please also cite them in APA (including the lesson title and instructor’s name).
Primary sources are first-hand accounts such as interviews, advertisements, speeches, company documents, statements, and press releases published by the company in question.
Secondary sources come from peer-reviewed scholarly journals, such as the Journal of Management. You may use like JSTOR, Google Scholar, and Social Science Research Network to find articles from these journals. Secondary sources may also come from reputable websites with .gov, .edu, or .org in the domain. (Wikipedia is not a reputable source, though the sources listed in Wikipedia articles may be acceptable.)
