Response to EACH question must be a minimum of 200 words:
1. Who are the major stakeholders utilizing healthcare financial information? List the key stakeholders, and briefly describe how each of them uses financial information in their role.
2. Why is financial ratio analysis crucial for understanding the financial position of a healthcare organization? Select any three of the commonly used financial ratios, provide the formula, and briefly explain what it tells us about the status of the healthcare facility.
3. Everything in the hospital needs to be replaced. What a statement that is to make, but it is true! Every piece of equipment, every piece of furniture, every mechanical system, the hospital roof, the heating and air conditioning system, even the hospital building itself eventually needs to be replaced. Of course, not all of that can be done in one year's budget. As a healthcare administrator, how will you determine how much money you can spend on capital replacements and upgrades in a particular year? Explain the three approaches to determining capital affordability.
4. Explain the difference between direct and indirect costs for a healthcare organization. Provide and discuss at least one example of a direct cost in health care and one example of an indirect cost in health care.
Reference:
Textbook : Berger, S. (2014). Fundamentals of health care financial management: A practical guide to fiscal issues and activities (4th ed.). San Francisco, CA: Jossey-Bass.