History of Financials Palms West Hospital is a subsidiary of HCA Holdings that was founded in 1986 (Ramirez, 2016). Being a subsidiary of a larger firm, financial inquiries are focused through the larger schematics of the company. At the beginning stages of the firm, HCA Holdings Inc. acquire a great deal of their hospitals through mergers as this was their major idea for the firm’s business strategy (Management’s Discussion and Analysis of the Financial Condition and Results of Operations, 2016). The company realized the advancements happening in the health care industry and focused on several key factors in keeping up the competitive advantages they had over other firms. Delivering a high quality of service, becoming significant providers of the services, and having a wide variety of services to offer, kept HCA Holdings Inc. strong in their embryonic stages (Management’s Discussion and Analysis of the Financial Condition and Results of Operations, 2016). Their earnings rose across the board every year and provided the firm with the a measure of operating performance in accordance with overall accepted accounting principles (Management’s Discussion and Analysis of the Financial Condition and Results of Operations, …show more content…
At the end of 2006, HCA Holdings Inc. had a net income of $1.036 billion dollars which included reduction on professional liability, gains on investments, and gains on facility sales among other things (Sources of Revenue, 2016). Facility admissions, inpatient, and outpatient surgeries increased in 2006 in comparison to what was recorded for 2005 (Sources of Revenue, 2016). When analyzing the data over the life span of the company, it is easy to notice the growth and development that the firm has
...and his vision in successfully transforming the medical center to a tertiary care facility. However, in 2008 under Ron Henderson, the medical center expenses began to skyrocket and revenues failed to keep up. Also, a hospital census indicated that, on average, Medicare patients consisted of 58% and Medicaid patients consisted of 18% which caused the medical center to suffer from reductions in reimbursements. Although noted by solid evidence that utilization was experiencing a steep decline, Mr. Henderson added 127 new positions to the medical center. In 2009, Mr. Henderson was fired after the board of trustees realized that this financial bind of an $8.6 million deficit was caused by Mr. Henderson. In order for the new CEO, Richard Reynolds, to succeed at his new job title, he must create a benchmarking process adopting certain goals to remain a worthy competitor.
First, let us analyze General Practice Affiliates’ current financial position. The income and expenses report shows a net revenue of $230,250. The net revenue is obtained after expenses, including taxes, of the company have been subtracted from revenue (Paterson, 2014, p. 124). The balance sheet shows a $306,180 in retained earnings. Retained earnings represent stakeholders’ equity (Paterson, 2014, p. 128). Retained earnings are usually invested back in the form of inventory or debt payments (Albrecht, Stice, Stice , & Swain, 2008). General Practice Affiliates’ cash flow analysis shows that the practice invests in new equipment. However, General Practice Affiliates mainly used cash during 2012. The main source of cash from operations came from depreciation expense, which is not a reliable source of funding (Paterson, 2014, p. 130). Accounts receivable increased by $50,000, while accounts payable only increased by $10,000. In addition, cash flow analysis shows a balance sheet data that is affected by future transactions (Paterson, 2014, p. 128). General Practice Affiliates choose to stretch the time to pay suppliers instead of paying its bills. ...
The revenue of the healthcare industry unlike any other depends on the inpatient occupancy or ALOS(average length of stay), the volume of outpatient visits and procedures, the services ordered for the inpatients and outpatient. For CHS the majority of its revenue comes from Managed care and other insurers ( apart from govt. insurance) with 54.5%, after which comes the gover...
West Florida Hospital located in Pensacola, Florida offered a pleasing Introductory Pharmacy Experience for me. Based on the West Florida Hospital website, they are affiliated with the Hospital Corporation of America known as HCA, which is the nation’s leading provider of healthcare. They provide private rooms for all their patients. This facility is the only one in the area that is an Atrial Fibrillation Certified hospital and first Accredited Chest Pain Center with PCI and Breast Imaging Center of Excellence. West Florida is a “for profit” hospital, and an Advanced Primary Stroke Center. The hospital offers many services in obstetrics, emergency care, oncology, orthopedics, cardiology/ cardiovascular surgery, neurology/ neurosurgery, behavioral
Charles Denton is an eighty-four year old, Caucasian male born on August 14, 1930. Charles Denton was born and raised in Newton, North Carolina. He is a retired employee at a major furniture company, a veteran, and has been retired for approximately 15 years. Charles has no children and no living relatives. He has a neighbor, Cathy, who takes him to and from appointments and helps him get groceries. Currently, Cathy is his biggest support system.
It would be necessary for a hospital administrator to look closely at ways to lower healthcare costs and provide more efficient care when a large employer like BRPP states they are thinking of relocating their employee inpatient hospital services to a company like InduShealth. InduShealth is offering substantially lower prices for several surgical procedures and a U.S. hospital administrator would not want to lose this large consumer population if it was possible to find more efficient methods of providing healthcare to their patients (McLaughlin & McLaughlin, 2008). One pricing strategy that a hospital administrator could advocate for is a bundled...
In 2015, companies like HCA and LifePoint have been diligent in cutting cost to increase patient volume. Through cutting costs and adopting new initiatives, for-profits are now beginning to be more preferred for some customers rather than non-profits. Another advantage for for-profit hospitals, and as a result of The Patient Protection and Affordable Care Act a boost in the form of a better payer mix, has suggested a decline in bad debt expenses. Another advantage is the type of facilities for-profits offer, because they are for-profit they are keen in keeping up with technology, current developments in health and medical research and offering state of the are facilities that are technology based to attract
Hospital Corporation of America (HCA). Staff Analysis Statement of Problem HCA, after following a conservative financial policy since its establishment, has entered the new decade preparing to make some changes in order to realign their financial strategy and capital structure. Since its establishment, HCA has often been used as a measure for the entire proprietary hospital industry. Is it now time for the market to realign their expectations for the industry as a whole? HCA has target goals that need to be met in order to accomplish milestones in the future.
By now most all Americans have heard of the terms non-profit, for-profit and government hospitals when referring to a healthcare organization. However, not many of us understand the difference between the three nor do we know if the hospital we are using is a nonprofit, for-profit or government-owned entity. Lines are blurred when it comes to the services they provide, if they are different are alike, and if profitability affects the level of care or specialization. Moreover, complexities arise when thinking in terms of which design is best. Questions such as which entity is more profitable, which provides the best services and which suggests the best sustainability over time, are often at the forefront of our minds when receiving medical care. In addition legalities of each are different thus they may appear to be the same in terms of what they do but they operate under different set of rules.
Trinity Community Hospital community health assessment needs was obtained from input the hospital CEO and senior management obtained input from medical staff members and community leaders to develop a vision for the hospital. A five-year plan identified orthopedic, oncology and cardiology services needed to be developed in order to better serve the community needs. A five-year targeted outcome for these services was outlined along with the level of capital investment required to develop these services. Lastly, financial analysis was conducted to determine if sufficient margin will be generated for future growth. A detail analysis of orthopedic service line is included in this paper to determine the feasibility of the proposed service line.
HCUP provides reliable comprehensive information for hospital, clinics and research organization (HCUP, 2015). These facilities can use the data that HCUP have collected to answer question they have about the use of healthcare, access, outcomes, and the cost that is related the hospital inpatient stay, emergency department visit and ambulatory surgery and services. They are several reports that HCUP produce to help aid the medical facilities. The HCUP statistical briefs reports is a short report that focuses on topics associated to hospital use and cost for specific conditions or populations (HCUP, 2015). For example it reports medical condition treated and procedures performed in the hospital, and quality of care. The projection report uses longitudinal HCUP data to project national and regional estimates on healthcare priorities (HCUP, 2015). “HCUP methods series reports address methodological issues regarding use of HCUP databases, software tools and supplemental files” (HCUP,
Financial factors depict a vital role in today’s health care system. Presently, the United States spends on health care services than any other country; trillions of dollars were spent over a five-year period. The rising costs of healthcare continue to grow and affect Americas all over the world. The Affordable Care Act is a law that was passed to make healthcare and health insurance more affordable and available to Americans. “The Affordable Care Act put in place comprehensive health insurance reforms that have improved access, affordability, and quality in healthcare for Americans.” (ACA, 2015)
Over the last few decades, various laws have been established with the main purpose of making the system equal and more efficient for all. The U.S. hospital system has become more complex and less efficient due to significant political and monetary interference along with the passage of these laws. The most recent amongst those laws is the Affordable Care Act (ACA), which was signed into legislation by President Obama in 2010. Various provisions in the ACA includes universal health insurance coverage, significant changes in the payment for health services and changes in the health care organization delivery and workforce policy. Thus, ACA has a significant influence on the current U.S. healthcare system.
By purchasing the primary care practices, Newland Hospital has created a health system. Health systems (HSs) are formerly associated health services organizations (HSOs) that have joined together for a multitude of reasons. HSs arise from a mutual need and a willingness among the participating HSOs/HSs to share knowledge, capabilities, risk, and costs to leverage innovation, and to take advantage of complementary strengths and capabilities (Longest & Darr, 2000, pg. 609). Additionally, such an integration unifies ownership of tangible and intangible assets, creates economies of scale, and expands the pool of patients. This particular form of integration is referred to as vertical integration, the coordinating, linking, or incorporating within a single organization 's activities or entities at different stages of the production process- in healthcare the process of producing and delivering patient care (Longest & Darr, 2000, pg. 93).
Healthcare is a dynamic enterprise by nature which devotes immense resources for the creation of new therapies, drugs and aiding medical devices. Beyond this technological advancement, there is also a financial insight which involves the short and long term planning in this sector. This insight continues to change over time due to the constant barrage of mergers and acquisitions in healthcare organizations. The entry of profit components in this industry is making it compulsive for such organizations to shift the marketing function from the periphery of healthcare to the centers.