HEALTH CARE BUSINESS ANALYSIS

Health Care Business Analysis

Health Care Business Analysis

Introduction

Patton-Fuller Community hospital commenced its operation in 1975. The hospital has its inception that the hospital is providing its dedicated medical and Health care services to all the people of Kelsey including the surrounding neighborhoods. The Patton-Fuller Hospital is operating with the prime intentions of making profit along with the fact that it is jointly owned by the active faculty of the hospital physicians (Finkler, Steven, David and Baker, 2007). The hospital is a 600-bed hospital, operating as a full service hospital and is the premier health care facility in the North-West valley (Catlin, Aaron, Cowan and Heffler, 2007). The primary key success factor behind the hospital sustained development is the quality of the health care services and its highly dedicated and qualified staff. The Patton-Fuller hospital is governed by a fourteen members and board of directors, the hospital is owned by 12 physician-owners, with Chief Financial officer and Chief executive officer as non-voting members.

Labor Issues

The main issue which is highlighted is the staffing level. The issue exists as the ratio of patients to nurses is 5 to 1. This means that for every 5 patients, there is 1 nurse. To analyze this issue and to determine a solution is extremely essential. Furthermore, the issue also raise questions on the hospital's capacity to accommodate patients and what will be the overall impact of hiring additional nurses on the hospital's operating cost.

Significance of Financial management

Patton-Fuller Community hospital derives its revenue from two major sources. Inpatient activities accounts for the total of 80% revenue (including medical, surgical and intensive care unit charges). While the rest 20% of the revenue of the hospital is derived from Emergency and other outpatient services (Catlin, Aaron, Cowan and Heffler, 2007).

Financial management is a necessary component of business success. If you can accurately and efficiently monitor the dynamics of income, expenditure and other key financial indicators, you can make the right management and financial decisions necessary for the growth of the company and all of your business (Finkler, Steven, David and Baker, 2007). The following aspects are considered to be essential for the smooth running of any hospital including the Patton-Fuller hospital (Catlin, Aaron, Cowan and Heffler, 2007).

Financial analysis of the company and develop recommendations for financial improvement of the company.

Diagnosing problems in the area of ??financial management and practical recommendations to improve its effectiveness.

Develop and / or Optimization of the Financial Management System:

Company's Financial Structure,

Management Accounting System,

System of Budgetary Planning and Control,

Resource Management System,

Management Costs.

Optimizing the use or development of an implementation program for financial management tools (Jeter, Debra, Chaney and Mkrtchyan, 2008).

Formulation of management accounting.

Financial management includes the preparation of financial reports for non-management use as well such as financial reporting for creditors, shareholders, tax authorities and regulatory agencies (Holland, Jeffrey and Torregrosa, 2008). The significance of financial management in any organization is of vital importance as it defines the financial position of the company and on the basis of this information the company makes its ...