Module 05 Project – RCM / Billing Financial Management
Research into different billing or revenue cycle management companies as well as in-house billing options (Hiring your own staf fand purchasing billing software.) and answer the following questions.
What option will you choose for your facility and why? MY FACILITY IS PRIMARY CARE PLEASE DONT LEAVE THAT OUT!!!!!! If you chose to hire a billing company, describe the company chosen and explain why they stood out.
Things to think about:
Cost
Reputation / Reliability
Services Provided
A/R collection rate
Relevance to your model type chosen
This will be important to think about as part of your budget for your final project.
Requirements: 2-3 pages (not including title/reference page) APA Format
Running Head: FINANCIAL STATEMENTS 1
FINANCIAL STATEMENTS 4
Financial Statements
Jamie Raines
Rasmussen College
H320/HSA3170 SECTION 02 FINANCIAL MANAGEMENT OF HEALTHCARE ORGANIZATIONS
Dwight Preston
August 20th, 2020
Balance Sheet
A balance sheet refers to a financial statement which tends to give a report on the assets, liabilities as well as shareholders equity of any institution like a healthcare facility. The balance sheet usually gives such a statement at a specific point in time, hence providing a basis for computing the rates of return and evaluating the institution’s capital structure. The balance sheet’s core is usually the accounting equation, which equalizes the sum of the liabilities and equity of an institution with the assets. The medical practice manager can make use of the balance sheet to evaluate the overall health of the healthcare facility as well as its liquidity or even how easily its assets can be turned into cash. The balance sheet can be utilized in financial performance since it can give them long term versus the short term debt besides giving the manager the information concerning the kind of assets which the company owns as well as the percentage of such assets that are financed with liabilities and the equity (Muda et al. 2017).
Income Statement
This refers to a financial statement which tends to provide a summary of the business operations during the entire year. This usually starts with the business revenue and ends with the net income. This is the financial statement that provides the gross profit margin, the cost of goods sold, the operating profit margin, and the net profit margin. A business or company manager needs to measure the company’s financial performance since it gives an overview of the number of shares unsettled and carries out a comparison against the business performance to the prior year. Therefore, this helps the manager understand whether the business is making losses or profit at the end of the year. The fact that it allows the manager to carry out a comparison to other previous years helps in understanding the company’s regular financial performance (Osadchy et al. 2018).
Cash Flow Statement
This is another financial statement that can be described as a combination of both the balance sheet and the income statement. This is an essential document since it provides a reconciliation between the net revenue and the cash flow of the business. This helps the financial analysts as well as the business manager to have an insight into how much the amount of the company or business expenditures on stock repurchases, dividends, as well as capital expenditures. This also provides the source besides the uses of cash flows of the business from operations, investments, and financing. This financial statement helps in measuring how well a company manages its cash position, implying that the manager is in a place to measure how well the company cash to pay its short-term liabilities besides funding its operating expenditures. This is as well a mandatory part of the institutions financial reports (Traina, 2018).
Retained Earnings and Budget
Retained earnings refer to the amount of net income left over for a given business after paying dividends to the shareholders. Often, this profit is paid out to shareholders. However, it can be re-invested back into the company for growth. This helps the company manager in measuring the financial performance of the business. For instance, if the amount of retained earnings is a net loss, it implies that economic performance is not excellent. However, for a net profit income, the company’s financial performance is taken to be moving in the right direction (Minnis, & Sutherland, 2017).
References:
Minnis, M., & Sutherland, A. (2017). Financial statements as monitoring mechanisms: Evidence from small commercial loans. Journal of Accounting Research, 55(1), 197-233. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/1475-679X.12127
Muda, I., Dharsuky, A., Siregar, H. S., & Sadalia, I. (2017, March). Combined Loadings and Cross-Dimensional Loadings Timeliness of Presentation of Financial Statements of Local Government. In IOP Conference Series: Materials Science and Engineering (Vol. 180, No. 1, p. 012099). IOP Publishing. Retrieved from https://iopscience.iop.org/article/10.1088/1757-899X/180/1/012099/meta
Osadchy, E. A., Akhmetshin, E. M., Amirova, E. F., Bochkareva, T. N., Gazizyanova, Y., & Yumashev, A. V. (2018). Financial statements of a company as an information base for decision-making in a transforming economy. Retrieved from https://www.um.edu.mt/library/oar/handle/123456789/33582
Traina, J. (2018). Is aggregate market power increasing? Production trends using financial statements. Production Trends Using Financial Statements (February 8, 2018). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3120849
