A DISTINGUISHED POST INCLUDES: Student’s post indicates thoughtful analysis and provides valuable insight into the topic. Student thoroughly addresses all elements of the discussion prompt, and demonstrates an advanced knowledge of the topic. Student makes strong and precise connections to previous and/or current course content, or to real-life situations, in initial post.
Step #1: Write a post regarding the topic below:
“Using Ratios as Performance Indicators and Inflation and Health Care Costs”
***Suggest one (1) key financial ratio that a health care administrator should create a trend analysis for. Suggest one (1) key insight that may be gained by the administrator in regard to the performance of the organization. Provide support for your rationale.
***Use the Internet to research the current and projected inflation rates and the related impact expected on health care costs. Next, assess the level of importance of one (1) key driver of the inflation of health care costs. Indicate how this inflation can be managed strategically in the future to minimize the financial impact. Provide support for your rationale.
Step #2: PLEASE WRITE A SEPARATE RESPONSE TO EACH CLASSMATE. The response should be positive and not negative. Student responds with thorough and constructive analysis to the required number of peers, relating the response to relevant course concepts.
#1. : Paul respond to student’s post regarding same topic
Suggest one (1) key financial ratio that a health care administrator should create a trend analysis for. Suggest one (1) key insight that may be gained by the administrator in regard to the performance of the organization. Provide support for your rationale.
It has been noted that in many organizations, budgets are growing increasingly tighter, resources are becoming more limited than ever, and operating margins are continuing to fall. Such circumstances require healthcare managers to improve cash flow management. Without effective cash flow management, problems can arise that hamper operating performance, financing activities, and investment objectives. Against this perspective, cash flow return (operating cash flows/total assets) is a key financial ratio worthy of consideration in the context of healthcare.
For example, this ratio measures the efficiency with which the organization has used all the assets at its disposal to generate cash flows. To put another, without effective cash flow, the organization won’t grow. To add, an organization that continually obtains most of its cash through operations demonstrates healthy and stable operations. In summary, a cash flow return ratio offers healthcare financial managers a wealth of useful information for planning and controlling cash flow. Of such, the most effective way to put this data to use is through a comparative analysis in order to offer valuable insights into cash flow and trend analysis
#2. : Paul McKenzie respond to student’s post regarding same topic