Write a series of recommendations to management regarding the necessary next steps to be successful n the event of a financial crisis.
ANALYSIS DISCUSSION—FINANCIAL CRISIS
Organizations can experience crises due to changes in economic conditions. In an economic downturn where individuals lose their jobs, many also lose their medical insurance coverage. With fewer employees on the payroll, states receive less revenue from taxes and thus have less money to pay for Medicaid and other services. This compounds the problem of healthcare funding. Hospitals lose out on high-margin procedures and, at the same time, see an increase in charity care in less profitable areas of the hospital.
Pick a hospital or healthcare setting
Write a summary of the strategic analysis of a hospital or healthcare setting including an analysis of management, mission, vision, marketing strategies, and operational considerations
Write a financial analysis including a discussion of current and projected earnings, cash flow, and financing needs.
Write a series of recommendations to management regarding the necessary next steps to be successful n the event of a financial crisis. For your paper, you will consider the following two scenarios:
Scenario 1: The nursing union has begun bargaining and has demanded a 10 percent increase in salaries, a guarantee of no lay-offs, and an increase in pension benefits. The increase in pension benefits has a $1 million annual impact.
Scenario 2: Your community is suffering a significant decrease in employment. Employees are losing their health insurance. You anticipate a 10 percent decrease in patient revenue. However, your costs will not decrease to the same extent. You anticipate many of these individuals will continue to visit your emergency room (ER) and consume resources. The net impact is a significant increase in bad debt.