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.
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 ...
Health care is a capital-intensive business and most health care institutions survive on traditional equity and debt financing. Healthcare institutions consider leasing for various reasons: to avoid the lengthy process of capital budget requests, to avoid technological delays, to benefit from maintenance services and for convenience.
To guarantee that its members receive appropriate, high level quality care in a cost-effective manner, each managed care organization (MCO) tailors its networks according to the characteristics of the providers, consumers, and competitors in a specific market. Other considerations for creating the network are the managed care organization's own goals for quality, accessibility, cost savings, and member satisfaction. Strategic planning for networks is a continuing process. In addition to an initial evaluation of its markets and goals, the managed care organization must periodically reevaluate its target markets and objectives. After reviewing the markets, then the organization must modify its network strategies accordingly to remain competitive in the rapidly changing healthcare industry. Coventry Health Care, Inc and its affiliated companies recognize the importance of developing and managing an adequate network of qualified providers to serve the need of customers and enrolled members (Coventry Health Care Intranet, Creasy and Spath, http://cvtynet/ ). "A central goal of managed care is containing the costs of delivering care, but the wide variety of organizations typically lumped together under the umbrella of managed care pursue this goal using combination of numerous strategies that vary from market to market and from organization to organization" (Baker , 2000, p.2).
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 ...
In almost 100 years, Miami City Hospital, led by civic leader and physician Dr. James M. Jackson, has developed from a small, 13-bed hospital to a comprehensive health systems with multiple clinics and hospitals, now named Jackson Health System (JHS).
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.
Robertson Johnson University Hospital (RWJUH), which is the flagship of Robert Wood Johnson Health System, is a large non-profit hospital with 965-beds located in New Brunswick and Somerville in Central New Jersey (Robertwood Johnson University Hospital, n.d). It has been ranked among the best hospital in the nation, as well as, with several specialties, and the best place to work by other publications (Robertwood Johnson University Hospital, n.d). Their mission of improving health and well-being to its patients stands out in the communities it serves (Robertwood Johnson University Hospital, n.d).
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
A recent phenomenon in the health services is the burgeoning of outpatient healthcare centers. Particularly vigorous growth has been observed in centers that perform diagnostic tests and simple surgeries and procedures like colonoscopies. At the current state, outpatient care centers outnumber hospitals in Pennsylvania. Furthermore, these centers now perform one of every four surgical and diagnostic procedures in the state (Levy 2006). However, the trend applies nationwide, and other states could easily follow suit. Many critics have commented on the negative and positive aspects of this trend. What remains to be determined are the long term effects (on health and the economy) of this paradigm shift, in terms of the wellness of the community as well as economically. Proponents of the movement have pointed to the lower overhead for these clinics trickling down to lower costs for patients. However, critics skeptically question whether the real benefits are for the patients or simply as a mechanism to stuff physicians' wallets. When considered as firms in the marketplace, it is evident that these two groups, both servicing the health needs of the community, have vastly different balance sheets and income statements. This transfers over to a difference in operational functionality, profitability, and cost structure. Furthermore, the disparity of financial motivations that is visible in the varying profit margins is of concern to the community. All of these are important considerations to be made when considering the economic implications of this new phenomenon.
Over the last 5 years the healthcare system has begun to transform. This transformation includes a focus change to preventative care to the new health conscious consumers and the reduction of healthcare costs (PR Newswire, 2013). This change comes from the consumers of healthcare as well as new laws such as the Patient Protection and Affordable Care Act (PPACA). This has created a need for hospitals to enter in partnerships to create hospital systems such as Centura Health. These hospital systems are expanding the continuum of care to include everything from preventative care, emergency care, and finally end-of-life care. This creates a need to monitor competition and create ideation plans to increase likelihood the consumer will use Centura Health over the competitors.
Based on the case study provided: Hospital A, Porter Regional Medical Centre (Hosp. A) & Hospital B Banner Regional Medical Centre and Turner Geriatric Centre (Hosp. B) merged to form a consolidated entity named “Portsmith Regional Medical Centre” (PRMC). Both Hospital A and B were fully accredited hospital, with “state-of- art diagnostic technology” which included MRI and CAT scanners, 24-hour physician staffed emergency centers. Both Hospital A and Hospital B are located in a small community of 60,000 people in southeastern part of Idaho.
...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.
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
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
When asked to state the primary goal of his business, Dr. Slez cited “high quality health care service” as the firm’s main objective. The effective treatment of, and development of trust with, the practice’s patients, Dr. Slez continued, takes precedence over profits. Indeed, if all healthcare firms placed profits above patient care (and many do) we would be far worse off. While doing what is needed to stop the spread of a disease or alleviate pain may not always be the most cost effective approach, it is the approach demanded by the government and general public. This is not to say that Dr. Slez’s firm does not try to maximize profit. The f...