Case Study : Titus Lake Hospital

1024 Words3 Pages

General Practices Affiliates is considering an offer from Titus Lake Hospital to join under a provider leasing model. Under a provider leasing model, Titus Lake Hospital is purchasing General Practices Affiliates’ services. The practice will retain control of personnel, management, and practice policies. Titus Lake Hospital submitted financial reports to assure transparency during the lease agreement process. The following analysis will discuss whether Titus Lake hospital is a viable financial partner for General Practice Affiliates, possible implications of the lease, and recommendations. 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. ... ... middle of paper ... ...ospital, later, pays General Practice Affiliates a fee. This fee must be carefully establish. Finally, General Practice Affiliates must ensure that all payments are done on time. To ensure timely payments, General Practice Affiliates will impose financial penalties to the hospital for late payments. General Practice Affiliates, due to its current financial situation, can benefit from a lease agreement with Titus Lake Hospital. Titus Lake Hospital is a financially stable business partner. General Practice Affiliates will retain management rights, but the volume of patients will increase. The downside for General Practice Affiliates is that a new electronical medical records system must be purchased. Financing for the new system should come from a variety of sources. Titus Lake Hospital must ensure a volume of referrals to make the agreement advisable.

Show More
Related

  • Rusty Metcalfe, Chief Information Officer Of Fundamental Administrative Services, LLC.

    764 Words  | 2 Pages

    The overarching goal at FLTCH is to become the nation’s best operator of skilled nursing facilities, while opportunistically delving into other senior care facilities when appropriate. The executive team is constantly scrubbing the portfolio, looking to divest underachieving investments while performing the necessary due diligence to acquire new facilities from competitors and struggling chains of the like. In order to mitigate litigation risk, the firm is legally structured as a consulting firm at the parent level with FAS, FCOS and each facility structured as an owned subsidiary and its own LLC. Flexibility and maneuverability are paramount in this ...

    Read More

  • Coastal Medical Center Swot Analysis Paper

    1586 Words  | 4 Pages

    ...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.

    Read More

  • Swot Analysis Of Kaiser Permanente

    856 Words  | 2 Pages

    With 17 existing hospitals and ____ physician practices, the Greater New Orleans Region of Louisiana is not a practical choice for Kaiser Permanente expansion. The four parishes: Plaquemines, Jefferson, St. Bernard, and Orleans would not make for a successful business venture. This report examines how the Kaiser Permanente Brand and Strategy Division assessed the region and determined the region could not realize and expand the mission and vision for Kaiser Permanente…..

    Read More

  • Growth Strategies for Ophthalmic Consultants of Boston

    1827 Words  | 4 Pages

    In addition to this business plan, we must also address the financial issues plaguing this organization. To illustrate some of these issues lets look at some of the trends here at OCB and within our Industry: For example, OCB’s clinic operations profitability in 1990 was 60%, and now in 1996 our profitability is only 37%, which is down 23 percentage points! We can blame some of this on rising costs of overhead, consumables, etc, however this is happening as the industry as a whole is growing 5% annually, and as our customer base, largely senior citizens, population is growing at almost 1% as year. We should be capitalizing on these industry trends, however, as you all know, not all the trends work in our favor. For example, our lifeblood, the Insurance company’s managed care organizations, and government healthcare reimbursement programs shows a downward trend of allowable payments for our services (DRGs) For example in 1995 the DRG price of ...

    Read More

  • Physician/Hospital Alignment: A Strategic Approach to Healthcare Reform

    2143 Words  | 5 Pages

    The Physician/Hospital alignment model is the teamwork between physicians and hospitals to achieve the common goal of providing quality care to patients (med synergies). Physician/hospital alignment opportunities have come into play more predominantly in recent years due to quality, financial, and regulatory aspects of healthcare reform. Physicians and hospitals are more motivated to align now because the new healthcare reform requires an improvement on key aspects such as quality, cost, and efficiency. Moreover, an increase in patient numbers, a decrease in reimbursements, and a shift among new physician goals and values have contributed to the drive for this alignment. Physician/hospital alignment can be characterized in the range of tactical to transformational. Tactical alignments can include joint ventures, co-management agreements, volunteer medical staff, etc.

    Read More

  • Case Study: Grady Memorial Hospital

    1044 Words  | 3 Pages

    Grady Memorial Hospital, also simply known as Grady, is the public hospital for the city of Atlanta. It was found in 1892 and is one the largest hospitals in the state of Georgia. Grady has become known for its amazing trauma service. As the hospital website notes, they are the region’s premier level I trauma center (Grady, 2016). While Grady excels at taking care of the critically injured, it still has areas that need some work.

    Read More

  • Physician-Hospital Arrangements In Professional Integration

    867 Words  | 2 Pages

    Cuellara, A. E. & Gertlerb, P.J. (2006). Strategic integration of hospitals and physicians. Journal of Health Economics, 25(1), 1-28. Retrieved February 21, 2011, from http://members.cox.net/mshachar/Cuellar_2006_via_TUI.htm.

    Read More

  • Managing Healthcare Costs and Revenues

    2273 Words  | 5 Pages

    Buchbinder, S. B., & Shanks, N. A. (2007). Managing Costs and Revenues. In (Ed.), Introduction to Healthcare Management ( ed., p. pp. -). : . []. doi: Retrieved from

    Read More

  • Unit implementation

    835 Words  | 2 Pages

    The ability of a unit to survive is largely dependent upon the hospitals internal financial budgetary performance and the external needs within the community. Developing a financial budget is a process that should use teamwork to plan and implement in order to be effective. The budget sets perimeters for administrators to follow throughout the year, allowing the director to report variances while providing guidance to maintain a minimum variance and adjust when possible (Finkler & McHugh, 2008). By using all department managers in the planning process of the new budget, the nurse executive is able to develop effective strategies for all departments while investing in the goals. This eliminates many problems associated with budget and identifies areas that need improvement or expansion. Because of the competition, declining margins, and other economic pressures, nurse executives need to take steps to control costs and increase revenues for this unit. The overall goal of the financial performance within the organization is to meet the total budgetary needs of the unit to produce favorable outcomes. My focus will be to propose the expansion of a new Joint Replacement Unit (JRU) within the hospital, while identifying the major operating components of the budget for this organization. The importance of reviewing the budget for a newly developed unit is to allow the nurse executive and administrative team to manage the existing organizational programs within in the facility, plan for goal accomplishments for the new unit, while controlling costs.

    Read More

  • Creekside Community Hospital Financial Analysis

    639 Words  | 2 Pages

    In anticipation of a decrease in payments by government and insurance agencies, Creekside Community Hospital may want to consider merging with another healthcare organization to increase investment and funding opportunities. In merging with another organization, Creekside Community Hospital can become more competitive with other larger organizations by having shared resources (Jarvis, 2013). Shared resources will not only increase the investment

    Read More

  • What Are External Stakeholders In Health Care

    734 Words  | 2 Pages

    The competing external stakeholders seek to attract the focal organization’s dependents. These competitors may be direct competitors for patients or they may be competing for skilled personnel. The patients hold the role of seeking care. They demand that they receive quality care in the organization and that the care is consistent. The patients play a role in the organization because the organization needs the patients to run the facility. The organization provides a service that the patients need and demand. The source of influence from external stakeholders comes from control of strategic resources materials, labor and

    Read More

  • The Rapid Growth of Managed Care

    1048 Words  | 3 Pages

    The rapid growth of managed care is the response to limited financial resources and the demand for healthcare services to be affordable. Economic viability is a crucial aspect of health care. Managed care plans were developed to provided health care services, but also to be a method to collect payment for services. There are different types of managed care plans. For example, health maintenance organization (HMO), preferred provider organization (PPO), and point-of-service (POS) plans. For brevity of this paper the HMO managed care system will be discussed along with the relevance of the role of the advance practitioner practicing in HMO setting.

    Read More

  • Health Care System: Demographic Analysis

    1264 Words  | 3 Pages

    Scranton city has three hospitals located within the city’s limit. Two hospitals are for profit and one is for non-profit. The first two are located blocks away from each other, Regional Hospital of Scranton and the other one is Mosses Taylor Hospital, which are owned by the Commonwealth Health organization. The non-profit Hospital is Geisinger Community Medical Center ran by Geisinger Health Systems. According to both Medicare and Consumer reports, all three hospitals provide emergency departments. However, both Regional Hospital and Geisinger Community Medical Center have the ability to track patient’s information electronically (Medicare.gov), whereas Moses Taylor Hospital does not. In addition, all three hospitals are acute care hospitals. Out of all three hospitals, Moses Taylor is the most unique with a labor and delivery department (Commonwealth Health). All three of these hospitals also accept Geisinger Health Plan

    Read More

  • Assisted Living: A Case Study

    590 Words  | 2 Pages

    For instance, when an AL facility has empty resident units, those open spots can be a major missed opportunity (Bowers, 2017). From the client’s perspective, there are many AL communities to choose from, making it crucial for AL facilities to stand out from their competitors. Also, occupancy rates can affect the way in which a prospective client chooses to become a resident of an AL facility. If a prospective client does not have the proper leads and move-in assistance for AL, then, unfortunately, they could go without the care they deserve and need. While this can seriously impact the prospective client, AL facilities are also negatively impacted as they can lose out on the revenue and success. Ultimately affecting leadership, due to the inadequate strategic marketing strategies and organizational development in

    Read More

  • Rosemont Behavioral Health Center Case Study

    1419 Words  | 3 Pages

    Both facilities will have the same Medical Director and one Director of Nursing running both locations. Management personnel will improve their communication by meeting once a week to discuss and brainstorm ideas; bill verification will be consistent in the two facilities; there will be a company wide purchasing system. To maximize revenues, there has to be a mix of out- patients and in patient care, there will be shorter stays in the future.

    Read More

More about Case Study : Titus Lake Hospital

Open Document