Capital Planning In Healthcare

My strategy will consist of three phases. These phases include: capital shortage, funding options for equipment acquisition and funding options for capital expansion. During these three phases I will observe the necessary financial statements and documents. From this information I will analyze the information and decide the best strategy for improvements. I will not only focus on the goals for the clinic, but long term budget goals as well.

The society we reside in has evolved to the point of no return. Most of our health care system consist of technology, implementation, goals, scanning, monitoring, forecasting and assessing. However, critical strategies and resource priorities involve ensuring that all the essential elements are currently met within the organization. Also, prioritizing strategies are as follows strategic thinking, strategic planning and managing strategic momentum. Each facet acknowledges and identifies what is important in hospitals and health care. Therefore, the delivery of each process allows the organization to recognize the need for the patient and population. THE LITTLE BOOK “the plan sets direction for the organization and through a common understanding

Effective financial management is the basis of thriving health care organizations. Organizations must make good investment decisions based on objective analysis (Healthcare Financial Management Association [HFMA], 2005). Integration of financial management principles provides decision makers with guidance to make capital decisions maximize mission-based benefits at effective costs (HFMA, 2005). An operating budget is the statement of profit and loss for the entire organization. Various health care entities prepare operating budget for the following year for discussion and approval by top management (Academic Writing Tips, 2011). At the end of the year, departmental managers provide an account for the previous year’s

Without strategic planning, several things can go wrong including missing out on great opportunities. Strategic planning is an organization’s outline to help achieve its purpose. Although strategic planning begins at the top of the pyramid, it is more effective when it is carry out as a whole among other in the organization. Having a good internal control system in place protects an organization from high risk, fraud, and more. Jackson Memorial Hospital has several weaknesses which are similar to its competitors and other health care organizations. For instance, Mount Sinai Medical Center one of Jackson Memorial’s competitors, encountered lack of strategic planning that led to many issues such as with readmissions, surgical complications,

Strategic planning explains the specific allocation of both human and capital resources in the identified gap in the organization. Sutter Davis Hospital has employed a successful strategic plan that begins by identifying their stakeholder and ends with the evaluation of the actions identified and the right tasks to be undertaken to achieve the set objective. The strategies implemented are aligned with the dashboard, the five pillars, and Mission, Vision and Value of the firm (Wagner, 2015). For instance, through a successful strategic plan the Sutter Davis Hospital was able to achieve low levels of infection rate which are below the standard metric and the competitors’

The healthcare financial executives encounter numerous challenges for their day-to-day operations. Consequently, the health care industry is a highly competitive market and the access to capital is limited, which increases the stakes and the importance of strategic planning (Sussman, Grube, & Samaris, 2009). In addition, there was a variety of financial conditions for the health care industry in 2007 and 2012. Overall, the health care costs tend to consume a significant amount of society 's resources and the ability to control health care costs is a significant issue for health care executives (Coss, 2009). As a result, there has been a variety of changes to the health care industry 's financial management sector. The purpose of this paper is to synthesize the financial management changes.

In order to determine which course of action would best serve community or direction for a healthcare organization, administration should obtain input from the stakeholders of the organization (Nowicki, 2015). Even though both Medicare and The Joint Commission require healthcare organizations to complete strategic plans, it is important for the business to have a vision and direction in which to best serve their stakeholders (Nowicki, 2015). Strategic planning provides a plan to achieve the organization’s goals, as well as a plan to fund the operational and capital costs for a healthcare organization to serve successfully their

The purpose of my paper is to explain the importance of the capital cycle and why healthcare executives need to know and determine how the capital cycle impacts the operational budget. Within my paper, I will explain the capital standard approval process to include all the individuals involved in the process. I will discuss the essential characteristics of a financially successful organization, along with how healthcare managers should apply these traits when operating the capital cycle of their organization.

Managing the finances of Health Care Systems, Inc. has taken center stage in enhancing the efficiency and success of this vast enterprise. The healthcare industry as a whole has changed dramatically since the evolution of the Affordable Care Act. The adoption of Medicare’s coding system for efficient billing coupled with the use of Electronic Medical Records are examples of the major transformation taking place within Health Care Systems, Incorporated. Moreover, the role of finance at Health Care Systems Inc. has received a new face to focus on basic functions such as Pooling of Resources, Revenue Collection as well as Purchase of Interventions. Pooling of resources entails accumulation and proper management of revenues in order for members of the pooled funds to share a combined health risks, hence shielding the individual member from vast unprecedented health expenditures. Payment allows the pool members to settle their average expected costs before due, consequently relieving them from uncertainty in addition to assurance of compensation in case of occurrence of a loss. Pooling combined with payment aids in developing insurance structure and redistribution of health spending among high and low-income individuals and high and low-risk individuals. Revenue collection is all about raising money from households and businesses as well as external sources while purchasing is all about sourcing for goods and services from private and public providers. These three financial

In any management organization, planning is one key element in moving a business forward. In Health Care Administration the modern concept applies to planning leading to order. The vertical planning that combines functions of different organizations, where the patient outputs of one organization in the system are inputs of another (geographic proximity required) (Pointer, Williams, Isaacs, Knickman, & Barr, 2007 p. 24). The concept included short-term profits, mass production, and a top-down focus on patients, with the HIM professional representing a cost.

The adoption of the five strategies associated with costing will allow hospitals the ability to recognize and anticipate new changes, and allow providers the ability to adapt to healthcare reform through direct communication and action with their managers and accounting. This will enable hospitals the ability to competitively and fiscally combat the challenges arising in the healthcare marketplace. Furthermore, with many of the legislated reforms being implemented within three years, providers should actively reassess their costing programs now in an attempt to adapt to the impending change.

Effective strategic planning and resultant implementation in current healthcare systems is a critical component of remaining viable in the present-day fluid healthcare industry. According to Tibergien (2013), strategic planning and implementation address the distribution of resources. In this manner, healthcare systems tackle weaknesses by asking how best to allocate resources in order to minimize weaknesses and to improve the ability to capitalize on opportunities (Sachdev, 2014).

Running a healthcare organization often requires administrators to sensibly plan and review their finances. Most healthcare organizations use some form of accounting for classifying, assessing, evaluating and reporting their financial data. Budgets usually indicate a comprehensive analysis of how a healthcare organization expects to spend money in future time periods. Many healthcare organization make budgets on a yearly basis so they can carefully outline the projected needs of each department. (Vitez, n.d.) In the healthcare, staff salaries and benefits account for a great percentage of the budget. Chief financial officers have many responsibilities to address on a daily, weekly, monthly and quarterly bases. Chief financial officers want

The sole purpose behind planning is to accomplish a set goal. Planning is influenced by the financing that supports the plan. After a plan and financing is place it is time to deliver or act on that plan. Population trends have a major influence on the planning, financing and delivery of healthcare.

Every successful business has a defined vision and goals that influence the approach that is utilized to fulfill the company’s objective. Strategic and organizational planning is the cornerstone of developing a business strategy to attain an organization’s purpose. With the passage of the Affordable Care Act (ACA), strategic and organizational planning have become essential in a healthcare system’s ability to remain competitive within their community, as well as remaining compliant with governmental standards. This paper will explore strategic and organizational planning with the purpose of exploring these concepts with a local hospital.