Financial Analysis of the Healthcare Field

EBITDA - Earnings before interest, taxes, depreciation and amortization is an indicator of a company's financial performance which is calculated in the following manner: ("EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization Definition | Investopedia," n.d.)

When I joined Exceptional Healthcare, we were operating at a loss. Operations were being financed with loans. The Board member briefed me on the situation and requested I identify the problem. First, I reviewed all the company expenses, and there was no expense to reduce, so I had to analyze the company’s revenue. I started by categorizing all patient visits by the payer (insurance companies) and by CPT codes (Type of visit/ procedure performed) to determine the reimbursement rates. Using my healthcare finance experience, I compared our reimbursement rates with other clinics in similar market/ business and noticed that ours were $500 to $800 lower. Then I audited the patient charts from the clinic to the billing company and discovered several

Cost benefits of the community may include a variety of health necessities that serve useful for the patient and the healthcare provider. It entails items that deem useful in the treatment and preventive care of the patient. In a situation that results are necessary to receive an equipment is needed to conduct the patients pinpoint health for examination. In making the decision of different options seen to be useful for a healthcare facility an ultrasound device is the best way to connect the patient's health with the healthcare provider.

The Patient Protection and Affordable Care Act have given the clue to the healthcare industry which is related to the regulatory and reimbursement direction, dispute of the politic continuously to modify healthcare reform will be perform the uncertainty than usual into the healthcare landscape for the next becoming two years later. Moreover, this is certainly sure that the healthcare industries are penetrating the condition where the operating and capital costs act as the critical success factors. According to Horrssen (2013), over the next five years, capital financing decisions will play the center role in strategies. This is because, analysis and decision making will take the part as to determine the “winners”

When it comes to accounting most people tend to shy away from the details. However, these details should be considered extremely important for any business to be successful. Even though the main goal of every health care industry or provider is to serve and care for patients, they are still operating within a business that must follow through with getting paid for the services that are rendered. Similar to all business operations, health care industries must pay close attention to profit and loss in order for their operations to continue effectively.

What distinguished very competitive markets (those with below average profit margins) from less competitive markets (those with average profit margins)? Healthcare managers must understand the structure of private and social insurance programs because much of their organizations’ revenues will be shaped by these programs. Managers must be aware that consumers ultimately pay for healthcare products, a key fact obscured by the complex structure of the U.S. healthcare financing system. Substantial numbers of healthcare mangers serve firms that seek to maximize profits. For an example, for-profit hospitals, most insurance companies, and a broad range of other organizations explicitly seek maximum profits. Many not-for profit healthcare organization

According to Ozcan (2009), health care has continuously evolved into one of the main fields that present a comparatively widened gap in terms of investment. Private entrepreneurs have identified and capitalized on this area as the best sector to make their investments. Despite the reason for the existence of a given healthcare firm, organizational managers have to gain vivid understanding of their healthcare firms as they strive higher to make supernormal profits (Langenbrunner, Cashin, O'Dougherty & World Bank, 2009). In third regard, healthcare organizational mangers have a crucial role of ensuring that they understand vividly the importance of analyzing different calculations as well as ratios that are integrally crucial to the success of the firm.

Financial and managerial accounting are integral functions that allow organizations to manage its operational activities. In addition to budgets and variance analyses, both financial as well as managerial accounting are vital elements of healthcare finance. It is therefore important

In this paper, I will use financial data and research of a publicly traded healthcare company to give an analysis of the selected company’s financial status.

The market sector we have chosen to do our financial analysis is Health Care. The Health Care market sector is then further divided into six main sub-sectors, for which our three companies, Johnson & Johnson (JNJ), Pfizer (PFE), and AstraZeneca (AZN), are categorized in the Pharmaceutical sub-sector. Furthermore, Yahoo Finance’s industry center labels these three companies as being Drug Manufacturers-Major. This industry is unique in that it has both defensive and cyclical aspects due to the overall need for medical treatment of diseases and the growth of innovative products and treatments. This market sector is also known for its heavy regulation and sensitivity to the political climate. One such example of this is the Affordable Care Act, commonly known as “Obamacare”. Other important characteristics of this market sector are its heavy Research and Development spending, extended times for products to reach the market and

Includes the design of health services that impact the way in which services are given. Some of this involves the numbers and kinds of healthcare staff; the way in which they are put together to provide their services; the many types of building, tools and the range of services offered. As well as the systems of management and accessibility, types of financing and the way in which eligible patients are being helped.

For the tenth straight year financial experiments have been recorded as the number one concern of healthcare managers, according to a yearly survey from the American College of Healthcare Administrators. Approaching in second was healthcare improvement implementation, trailed by government orders, and patient protection and excellence, both of which graded third. This just reproduces the massive pressures that hospitals are under right now, says (Deborah J. Bowen), president/CEO of ACHE. Everyone is plummeting functioning prices and thinking in a different way about how they are going about moving from fee for service to these value based payments where quality and finances are accounted for. It's not commercial as normal by any elasticity

What is the financial impact of this situation on the organization? Develop a short plan for how you would compensate for this situation.

Amputation  is one of the serious injuries which have the potential to completely change the life of a person, and this explains why it is significant for medical practitioners to be extra careful when handling patients with such conditions. In the recent past, the world has witnessed cases of mishandling of patients with amputation, which has resulted in legal cases.  Toolan et al (346) reveals a number of cases brought against doctors by amputated patients. The authors indicate that about 174 claims were settled by the National Health Service Litigation Authority between 2005 and 2010. The plaintiffs in these cases made different claims based on their experience at the different health

Health care is an end-less field of possibilities and it’s ever changing as well as adapting to better accounting/ finance practices in health care organizations. One aspect that is relatively same universally is to generate and accumulate operating profits. Also, generate and accumulating profits could be related to borrowing, which will be explained in more detail. Next, the Patient Protection and Affordable Care Act of 2010 is extensive, complex, and deals with accounting and finance which is all worth mentioning. Another factor of health care organizations is not-for profit using health care funding and how it all ties in together for accounting and finance for health care organizations. Lastly, the purpose behind the concepts and