Question

MHC 6305 Financial Management of Healthcare Organization.

Our instructor left us with this question! I need to assitance in understanding and expalining his question.

What are the key components that healthcare organizations have in regards to investment planning, capital planning and operational planning for developing and implementing the Healthcare Organizational budget.

Answer 1

what instructor is tryinhg to ask his that in the healthcare ornganisation, there are three types pf cash outflow. He wants to know what are the items in those 3 parts. The three parts and typical activities in them are:

Investmnet: If the organisation has excess cash then how should they invest them in order to eanr extra income out it in form of equity, dividend, interest etc. Typical investments can be bonds, shares, federal funds

Capital planning: It includes expenditure on the capital assets like surgircal machines, labs, hospital building etc., In order to grow and keep hospital updated they have to spend money in capial assets

Operational expenses: it includes expenses on wages, salaries, utlities etc.

It is necessary for healthcare org. to segregate these cashflows in order to have understanding of the expenditures and better control it.

Hope this helps. Thanks