Task 2 Financial Management

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School

Western Governors University *

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Course

C981

Subject

Health Science

Date

May 1, 2024

Type

pdf

Pages

9

Uploaded by BrigadierFinchMaster1049 on coursehero.com

Task#2 2 healthcare services (Miami-Dade County, n.d.). Even though 82.7% of the population has completed high school or higher education, 75.1% of them speak a language other than English at home, which can make it difficult to understand their healthcare needs (U.S Census Bureau, n.d.). This population's low socioeconomic position is a result of its 16% with no degree, 4.06% unemployed rate (Miami-Dade Matters, n.d.), 14.5% poverty rate, and median income of $64,215 (U.S Census Bureau, n.d.). Reducing emergent deliveries, cesarean sections, and premature births can be achieved by expanding outpatient services to include prenatal care, follow-up with specialists, patient access to treatment, and discussion of concerns with healthcare providers. The new service line's primary goal should focus on improved access to healthcare, enhance the pregnancy experience, and promote the health of both the mother and the unborn child. B. By encouraging health and wellness, Corazon y Alma should implement a payment plan that enables the community to have access to the best care possible, more knowledge about prenatal health, preventative care, and maintain communication between doctors and expectant patients. An episode-of-care plan is a payment schedule that includes all services necessary for the treatment of a disease, accident, or other medical condition (Brantes, F.de., n.d.). If there are more complex needs, this payment option allows for different payment levels. The services to be rendered during an episode will be determined by the provider (Miller, 2009). This plan will cover all necessary services during pregnancy and encourage medical professionals to involve patients in their care, making sure they
Task#2 3 understand the significance of appointments and the actions required to have a healthy baby, hence lowering the number of caesarean sections and premature births. Financial Feasibility C1. Income statement allocation pro forma operating budget (D513 Pro Forma operating budget, n.d.)
Task#2 4 Prenatal Care Forma operating budget (D513 Pro Forma operating budget, n.d.) According to the Prenatal Care Pro Forma, there was an operating margin of 9.1% with $6,525,000 in total operating revenue, $591,223 in operating income, $5,933,777 in total operating costs, and $745,027 in net income (Corazon y Alma financial data, n.d.). C2. To better control operations, variance analysis evaluates gains and losses in budgeting realized values compared with budgeted values (Gapenski & Reiter, 2016). Estimates including potential utilization, supply expenses, and salary will be assessed.
Task#2 5 § With a total of 311,861, the operating cost variance is encouraging for investment. Variance= Operational costs service #2-Prenatal Pro formas operating cost [6,245,638-5,933,777=311,861] (Corazon y Alma financial data, n.d.). § The salaries for Prenatal Pro formas are 3,203,763, while those for Service #2 are 3,559,737. Prenatal Pro formas salaries account for 49.1% of overall operating expenses, while Service #2 salaries account for 53% (Corazon y Alma financial data, n.d.). § Prenatal Pro forma's total operating margin is 9.1%, whereas Service #2's is 7%, indicating a 2.1% difference. This minimal outlay demonstrates the security of the investment (Corazon y Alma financial data, n.d.). C3. A single payment can be issued to the provider under the episode-of-care payment model, and the amount can be adjusted if more specialized care is needed (Miller, 2009). This enables the healthcare provider to deliver quality care and be proactive in suggesting preventative care to the public. The financial department can predict how much will be paid for treatment attributable to this payment plan. The department's budget will need to be based on an annual patient count projection. Assessing Corazon y Alma's income statement, it appears that the medical center consistently loses money since its costs outweigh its revenues. Given that its anticipated operating revenues are 9.1% greater than those of service #2, which are 7%, the prenatal new service line has the potential to increase the medical center's revenue (Corazon y Alma financial data, n.d.).
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