i need a complete rephrase of this.... Healthcare finance course has provided gr
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Question
i need a complete rephrase of this....
Healthcare finance course has provided great understanding of financial management, accounting and their application to healthcare management. There are several important things that have been learnt during the course regarding costs, payments methods, cash flows and reimbursement rates. The three most important take aways from this course are 5 year financial plan, project risk analysis and profit (CVP) analysis.
5 year financial plans provide a snapshot view of the firms financial health in the coming 5 years. Using the firms current financial data we can predict their future. This will help the organization to perform SWOT analysis from a financial perspective. They can identify areas which require maximum funds, areas that require improvement. Understanding how to create the 5 year plan can help us take informed financial decisions.
Risk analysis is a key element in all financial decisions. The higher the risk associated with the investment, the higher the required rate of return. It is important to ensure that the cost of capital used as the discount rate in a projects return on investment analysis. We need to understand if the project has average risk, below or above average risk. During this course we can also understand the various types of project risk such as stand-alone risk, corporate risk and market risk.
Profit analysis is an analytical technique primarily used to analyze the effect of volume changes on profit. This can be used to assess the effects of volume changes on costs so this type of analysis can also be called as cost profit (CVP) analysis. This is a great tool for managers to examine the effects of alternative assumptions regarding cost, volume and prices. Such information can help managers evaluate the future courses of action regarding introduction of new services.
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Explanation / Answer
HEALTHCARE FINANCE
In Healthcare , apart from biology and a medical degree we also need some economics degree also. Although apart from serving the patients the world revolves around money.
Therefore we need if not possible a degree atleast a course in healthcare finance for understanding and managing healtcare.
Healthcare finance course has provided great understanding of financial management, accounting and their application to healthcare management.
There are several important things that have been learnt during the course regarding
IMPORTANT HIGHLIGHTS OF COURSE
We have lo learn a lot of important things. All of them are not easy to write. So, i listed below three of them.
The three most important take aways from this course are
(1.) 5 year Financial plan
About
In healthcare we need long term planning. It might be 1 year, 5 year or 10 year. Here we discuss 5 year.
5 year financial plans provide a snapshot view of the firms financial health in the coming 5 years. Using the firms current financial data we can predict their future.
Uses
Now we come to its usefulness . These long term financial plan help to perform critical analysis.
This will help the organization to perform SWOT analysis from a financial perspective. They can identify areas which require maximum funds, areas that require improvement. Understanding how to create the 5 year plan can help us take informed financial decisions. Informed financial decisions improved financial conditions.
(2.) Project risk analysis
About
There are also very different types of risks relaqted to patient life liability and other factors. This make us to be enabled in risk managment also.
Risk analysis is a key element in all financial decisions. The higher the risk associated with the investment, the higher the required rate of return.
Uses
So far we have talked of risk management now talk of its uses. To minimise risks we have to manage them.
Risk analysis is important to ensure that the cost of capital used as the discount rate in a projects return on investment analysis. We need to understand if the project has average risk, below or above average risk. During this course we can also understand the various types of project risk such as stand-alone risk, corporate risk and market risk. How the market responds to our policies and programmes is also a part of risk management.
(3.) Profit (CVP) analysis
About
At last it is important to analyse profit. Profit is one of the main reasons behind healthcare.
Profit analysis is an analytical technique primarily used to analyze the effect of volume changes on profit.
Uses
Profit analysis is used to maximise profits . It notes the things need to improved to get more profits.
It can be used to assess the effects of volume changes on costs so this type of analysis can also be called as cost profit (CVP) analysis. This is a great tool for managers to examine the effects of alternative assumptions regarding cost, volume and prices. Such information can help managers evaluate the future courses of action regarding introduction of new services. New better services lead to overall improvement of healthcare.
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