Healthcare Finance
Question#1
Financial statements and the calculations make management and the governing boards to view and even determine cash, cash equivalents, short-term securities, accounts receivables, inventories, prepaid expenses, and the working capital (Winkler, Smith & Calabrese, 2018).
Question#2
The key objective to the management of cash flows is to have the right amount always of the cash-on-hand through maximizing as well as expediting the cash inflows and even minimizing or delaying the cash outflow (Wright, 2017).
Question#3
The financial leaders show concerns in having the cash-on-hand so that the organizations may meet the expected demand for the cash to carry out transactions such as paying the employees and the suppliers (Lee, 2016). The cash-on-hand also helps in taking precautions because it assists in meeting the unexpected demand of the cash in paying the emergencies and different unplanned events. Cash-on-hand is also meant for speculation issues in that it helps in meeting unexpected demand for the money in scenarios that the vender provides the price reduction or good deal that the organizations do not want to miss.
Question#4
Three factors setting the healthcare sector apart from other reputable industries based on the accounts receivable are the nature of services it provides, the cost of services it offers, and the method of the payment for the kind of services it offers (Wright, 2017). Most of the healthcare services are provided in emergent nature, and they require highly trained personnel and the availability of high-tech equipment.
Question#5
Reimbursement for medical practices is impacted by different trends and changes in the healthcare industry. Medicare and Medicaid have begun to reduce physician reimbursement; third party payers negotiate with the physicians on the fee-for-service contracts that lead to refund less than 100% of the charges (Lee, 2016). The provision for the administrative simplification of HIPAA has tightened the submission requirements for the claims data.