Final PaperKimberly A. McCulloughHCA-610 Strategic Thinking in Health Care Economics and FinanceDr. Timothy HudsonColorado Christian University Final PaperIntroductionFinancial management involves evaluating the financial effectiveness and overall operations of the healthcare organization. As a new healthcare financial manager for Boston Children’s Hospital my responsibility is to evaluate the financial effectiveness of the hospital’s finances and also as a new healthcare financial manager, I want to make sure that Boston’s Children’s Hospital have the appropriate technology and seeing that the patient’s insurances are paid. (Nowicki, M. 2014, Chapter 3, pg. 12-13).Being a new healthcare financial manager for Boston Children’s Hospital what is my management view for me I want to make sure that I have the ability to increase the enthusiasm level of coworkers, team members, and subordinates. (Baker, J. J., & Baker, R. W. (2018). Because I am a brand new at this position as a healthcare financial manager for this hospital my management view is that I want to make sure everything goes right, and I want to see things go smoothly and I want to be there for my staff and others. (McLaughlin, D. & Olson, J. 2008).My general responsibility as a financial healthcare manager for this hospital is to oversee and leading the work of a group of people in many instances. (Saez, A. 2018). When Mr. Jones decided that he wanted to take another position as a healthcare financial manager for another hospital I considered my elements of financial management for this hospital is having a better strategic planning and other intermediate and long-term decision-making. (Paterson, M 2017 Chapter 4, pg. 25-30). God gives each of us unique opportunities, which occur during time, in situations. From my biblical worldview and as a Christian I can understand my abilities more fully by developing a personal awareness and by taking this class it promotes instructional focus, it allows me to incorporation of Christian understandings and principles. (Lovin, R. 2011, Chapter 4, pg. 6-7). I define stewardship is to love people by serving them, by helping them meet their practical needs. (Noebel, D. 2002). In order for me to compile a record of financial operations involving a general review of the organization’s financial statements I have to make sure that the financial statements are correct, the math is correct, and obtain a client’s representation. (Phillips, F., & Libby, R. 2015, Chapter 4, pg. 146-147). The most helpful way for me routinely review of financial statements I would use a balance sheet, an excel program, or annual report. (Loth, R. 2018). Combined Balance SheetAssets FY 2017 FY 2016 FY 2015Cash and Short-term Investments $617,940,000 $582,390,000 $531,105,000 Receivables $353,639,000 $386,243,000 $290,235,000 Other Current Assets $136,978,000 $123,747,000 $95,110,000 Total Current Assets $5,094,532,000 $4,587,443,000 $4,430,575,000 Investments $2,449,535,000 $2,135,493,000 $2,113,941,000 Property, Plant & Equipment (Net) $2,524,344,000 $2,322,334,000 $2,204,005,000 Other Assets $5,094,532,000 $4,587,443,000 $4,430,575,000 Total Assets $6,203,089,000 $5,679,823,000 $5,347,025,000 Tools that I use to review and manage comparative data going forward.Being a new healthcare financial manager for Boston Children’s Hospital the tools that I would use to review and manage comparative data going forward I would use the review of past objectives and standards, and/or the establishment of those for the year ahead, should include the input from the other supervisor. (Feldstein, P. 2019, Chapter 6, pgs.8-10). Other tools that I would use the assessment of the effectiveness of operations, compliance, and adequate assessment of efficiency requires the availability of standards against which actual costs may be compared. (Cleverley, W., & Cameron, A. 2007). Explain these tools and discuss their usefulness. Establish the usefulness of accounting information to economic decision-makers, prepare a classified balance sheet and compute widely used measures of liquidity and credit risk. Put a company’s profit into perspective by relating it to sales, assets, and shareholders’ equity. (Davenport, T. & McNeil, D. 2013). Other tools that are critical to use in financial management is by having good visual communication and planning tool for effective time management and for me to have project software can help me automatically by updating new time plans. (Drury, C. 2012, Chapter 1, pgs. 1-2).If the president told me to consider the possibility of the organization having to borrow money from a bank in the future to use in the operations of the organization, I would sit down with him and figure out a plan, I would do fundraising efforts that might include fun races, sell things, and also raffles. (Brealey, R., Myers, S., & Marcis, A. 2015). As to what management decisions would I consider and make regarding the business loan from the bank? First, I would check my credit score first, then I would make sure that my finances are up-to-date and current and then I would make copies of my income taxes. (Berk, J., & DeMarzo, P. 2017, Chapter 5, pg. 7). Boston Children’s Hospital Statement displaying hypothetical numbersInpatient Utilization Statistics by Medical Service NumberMedicareInpatients AverageLengthof Stay AverageCharges MedicareCase MixIndex (CMI)Cardiology15 5.47 $41,211 1.3623Cardiovascular Surgery13 12.77 $210,600 5.8982Medicine51 7.00 $65,347 1.1988Neurology18 6.78 $57,000 1.2353Pulmonology40 9.90 $64,331 1.4150Surgery24 15.88 $173,249 3.3703Urology28 3.96 $54,716 1.4794Total 207 8.41 $83,176 1.9365Financial Statistics $ %Gross Patient Revenue $2,040,104,189 89.0Non-Patient Revenue $252,996,563 11.0Total Revenue $2,293,100,752 Net Income (or Loss) $72,784,000 3.2The three basic differences between the debt and equity markets include the type of financial interest they represent, the way in which they generate profits for investors, how they are traded and their respective risk levels. One, it presents money raised by the company in the form of borrowed capital, it also funds raised through debt financing are to be paided. (Gapenski, L. & Reiter, K. 2015). As a result, hospital companies generally carry a high level of debt on their balance sheets. This debt comprises a combination of variable- and fixed-rate loans of varying time durations. Economic changes in interest rates affect hospital companies, depending on the company’s cost-structure and expansion strategies. (Lussier, R., & Henson, J. 2016).ConclusionIn taking this class I have learned so much about finances and the healthcare aspect budgeting, calculations, and raise awareness of disparities using research and data. Also, by taking this I also learned that I will have to this in my future in healthcare organizations. (James 4:3 King James Version) When you ask, you do not receive, because you ask with wrong motives, that you may spend what you get on your pleasures. References Nowicki, Michael (2014) Introduction to the Financial Management of Healthcare Organizations, Sixth Edition (Gateway to Healthcare Management) Sixth Edition Baker, J. J., & Baker, R. W. (2018). Health care Finance: Basic Tools For Nonfinancial Managers (5th ed.). McLaughlin, B. Daniel & Olson, R. (2008) Healthcare Operations Management, Third Edition 3rd Edition Saez, Alex (2018) The Duties & Responsibilities of a General Manager of Administration, Retrieved https://smallbusiness.chron.com/duties-responsibilities-general-manager-administration-46733.html Paterson, A. Mary (2017) Healthcare Finance and Financial Management: Essentials for Advanced Practice Nurses and Interdisciplinary Care Teams 1st Edition – PDF Version Lovin, W. Robin (2011) An Introduction to Christian Ethics: Goals, Duties, and Virtues Paperback Noebel, David (2001) Thinking Like a Christian: Understanding and Living a Biblical Worldview Paperback Libby, Patricia, & Philips, Fred (2015) Fundamentals of Financial Accounting 5th Edition Loth, Richard (2018) 12 Things You Need to Know About Financial Statements, Retrieved https://www.investopedia.com/articles/basics/06/financialreporting.asp Feldstein, J. Paul (2019) Health Policy Issues: An Economic Perspective, Seventh Edition Cleverley, O. William & Cameron, E. Andrew (2007) Essentials of Health Care Finance Davenport, H., Thomas & McNeil, Dwight (2013) Analytics in Healthcare and the Life Sciences: Strategies, Implementation Methods, and Best Practices Drury, C (2012) Management And Cost Accounting, (8th edition), Cengage Learning, Chapter 1, pgs. 1-2 Brealey. A. Richard, Myers, C. Stewart & Marcus, J., (2015) Fundamentals of Corporate Finance 8th Edition Berk, Jonathan & DeMarzo, Peter (2017) Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)Gapenski, C. Louis & Reiter, L., Kristen (2015) Healthcare Finance: An Introduction to Accounting and Financial ManagementLussier, N. Robert & Hendon, R. John (2016) Human Resource Management: Functions, Applications, and Skill Development Second Edition .
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