Review the information from your text and at least one scholarly source on capital investment plans.In a one- to two-page paper, which will be included in your Final Project, explain why your manager or the board would or would not accept a proposal for the capital investment. List at least three arguments that could be used for or against the proposal. In other words, what will the intended audience be looking for when reviewing the proposal?
week_1_assignment.docx
Unformatted Attachment Preview
Running head: HEALTH CARE FINANCE
Health Care Finance
Richard L Williams
HCA 312: Health Care Finance
March 19, 2017
Instructor: Kurlyn Monnie-Daniels
1
HEALTH CARE FINANCE
2
Health Care Finance
There has been an increasing expenditure by the government on medical services
between the years 1960 and 2010. The statistics show the great need of proper financial
management in hospitals to enable citizens to enjoy the best health services at the most
convenient and affordable prices. The Chief Financial Officer (CFO) is the most senior financial
officer in the hospital. He answers to the Chief Executive Officer. It is an important position in
the financial system of a hospital, and many decisions concerning the hospital’s funds and
money flow are determined by the CFO. The treasurer of a hospital is under the CFO, and two
positions would be very viable if included below the treasurer, a bursar and an accounts clerk.
These are individuals concerned with the direct handle of inpatient and outpatient financial
records together with their accounts.
The CFO who is on the Finance Committee Board and Chief Operating Officer (COO)
are the positions that would be most directly involved with capital investment decisions. The
CFO has the most direct and detailed access to all financial records of a hospital. The hospital’s
financial status can at any one point be spelled out by the CFO. The COO also has the detailed
outlook of the hospital’s operations regarding labor, inventories, and infrastructure. The CFO
and COO would, therefore, be the most appropriate positions from which capital investments can
be made. The two positions relate the operations and finance, which are the core determinants in
making any financial investment.
In a navy military hospital, financial records and accounts are very crucial. Even though
the government is the primary financier, the matter of medical cover and insurance policies are
HEALTH CARE FINANCE
3
incorporated a lot in record keeping. The managerial outline is not very different from the
civilian hospitals and health centers, and there also is significant harmonization of various
departments. In a Navy hospital, the CFO is the most senior in the financial department and is
liable for all financial accounting activities and records. Most decisions are, however, made in
committees and an individual officer can hardly have sole decision-making power. The system is
set to make sure there is a liability and, therefore, no misappropriations in money or facilities.
A capital investment in a navy hospital would mainly be aimed at increasing the revenue
of the hospital to enable the hospital run on least government reliance. A significant capital
investment would also lead to better medical services to soldiers and the individuals enrolled in
that system. Capital investment would most effectively be drafted by the COO and CFO, at an
elementary level. Due to the many procedures and protocols involved in government-related
facilities, whatever the COO and CFO draft would have to be taken through several committees
and panels for further decision making. Despite the many beauracracies involved in decision
making at the Navy hospital, the COO and CFO still stand out as the main players and
determinants in both the drafting and implementation of a viable capital investment plan.
Health is a major key to a thriving nation without noting the fact that it is a basic need for
every individual. In the Navy hospital where I work, matters of health are way important since
we are mainly concerned with the health of soldiers. The topic of finance and money is also
crucial in health since facilities and labor are required to be able to provide top-notch health
services. Proper financial planning and execution in hospitals are critical since it is what
determines the efficiency in providing medical services. The senior staff in the management of
hospitals has the biggest responsibility of ensuring that financial planning is done well and
executed in the most effective way so that inpatients and outpatients get the best medical care.
HEALTH CARE FINANCE
4
Reference
Gingerich, A. (2014). Financial Management in Healthcare. Hoboken, NJ: John Wiley and
Sons.
…
Purchase answer to see full
attachment
Recent Comments