Put your name here
Course Title: HSM 543 Health Service Finance Class
Week 6: You Decide Assignment
Professorâs Name:
Scenario
you sat in the CFO chair, studied a real world hospital AccountsReceivable (AR) problem with your team, and came up with a ProcessImprovement Plan to reduce Days in Accounts Receivable and improvecash flow to you hospital. Well the great news is that your planworked! This morning your Days in AR stand at 67. Not perfect....but much better, and you have five payrolls of cash on hand rightnow. Things are looking up for Community Memorial! And then justbefore lunch you get a call from the Bill Jacobs, Human ResourceDirector at Commercial Intertech (CI), the largest employer in thecommunity. Bill says, "I wanted you to hear it from me first. Wesigned a contract yesterday with MegaPlan Health. They will be themanaged care organization for all 4,500 of our employees and theirfamilies. About 9,000 patients total. I'm sure that you will wantto get a contract with MegaPlan as soon as possible. I noticed thatyour hospital is not on their Preferred Provider Network (PPN), andI am pretty sure that you will want to be, so that our employeescan continue using the facility." By the time you thank Bill forthe heads up, the acid is already churning in your stomach. In thehospital world, MegaPlan is known for cut-throat tactics,negotiating steep discounts with hospitals, and fighting everyclaim the hospital makes. Commercial Intertech has every right tocontract with any health insurance provider they like, but now youhave a problem. If you cannot get a decent contract with MegaPlanand become part of their Preferred Provider Network (PPN), manylocal patients may bypass your hospital and go the next closest PPNfacility. Delivered to your office this afternoon, by nocoincidence, is a contract proposal from MegaPlan. It calls for thehospital to provide a 35% discount from charges to MegaPlan and allof its members. And it includes service pre-authorizationrequirements which will make life very difficult for your businessoffice. You know from experience that the hospital loses moneywhenever the discount from charges exceeds 20%.
Your Role
You are the hospital CFO, trying to solve the managed careproblem.
Key Players
Dr. John Evans, Chief of Staff
Katrina Eaton, CEO
Linda Freed, Business Office Manager
Nancy Stritmatter, CNO
Assignment
Given the scenario, your role and the information provided bythe key players involved, it is time for you to make adecision.
What will you do? Whose advice makes the most sense to you inthis situation, and how will you proceed?
Understanding
Here you are to demonstrate a strong grasp of the problem athand. Also, demonstrate an understanding of how the course conceptsapply to the problem.
Provide at least 3 paragraphs that contain at least 5sentences.
Analysis
Here, you are to apply original thought to solving the businessproblem. Also, apply concepts from the course material correctlytoward solving the business problem.
Provide at least 3 paragraphs that contain at least 5sentences.
Execution
Here you are to type your answer clearly and succinctly usingstrong organization and proper grammar. Use citations correctly
Provide at least 3 paragraphs that contain at least 5sentences
References
At the top of page 3, provide your references in APA Format.Provide at least 3 references for your paper.
Some of the Course Keys concepts
Financial planning
Strategic Budgeting
Strategic planning
Management and decision making
accounts receivable
Third party payers
Cost shifting
Incremental cost
Working capital
Current assets
current liabilities
financial statements
future trends
Put your name here
Course Title: HSM 543 Health Service Finance Class
Week 6: You Decide Assignment
Professorâs Name:
Scenario
you sat in the CFO chair, studied a real world hospital AccountsReceivable (AR) problem with your team, and came up with a ProcessImprovement Plan to reduce Days in Accounts Receivable and improvecash flow to you hospital. Well the great news is that your planworked! This morning your Days in AR stand at 67. Not perfect....but much better, and you have five payrolls of cash on hand rightnow. Things are looking up for Community Memorial! And then justbefore lunch you get a call from the Bill Jacobs, Human ResourceDirector at Commercial Intertech (CI), the largest employer in thecommunity. Bill says, "I wanted you to hear it from me first. Wesigned a contract yesterday with MegaPlan Health. They will be themanaged care organization for all 4,500 of our employees and theirfamilies. About 9,000 patients total. I'm sure that you will wantto get a contract with MegaPlan as soon as possible. I noticed thatyour hospital is not on their Preferred Provider Network (PPN), andI am pretty sure that you will want to be, so that our employeescan continue using the facility." By the time you thank Bill forthe heads up, the acid is already churning in your stomach. In thehospital world, MegaPlan is known for cut-throat tactics,negotiating steep discounts with hospitals, and fighting everyclaim the hospital makes. Commercial Intertech has every right tocontract with any health insurance provider they like, but now youhave a problem. If you cannot get a decent contract with MegaPlanand become part of their Preferred Provider Network (PPN), manylocal patients may bypass your hospital and go the next closest PPNfacility. Delivered to your office this afternoon, by nocoincidence, is a contract proposal from MegaPlan. It calls for thehospital to provide a 35% discount from charges to MegaPlan and allof its members. And it includes service pre-authorizationrequirements which will make life very difficult for your businessoffice. You know from experience that the hospital loses moneywhenever the discount from charges exceeds 20%.
Your Role
You are the hospital CFO, trying to solve the managed careproblem.
Key Players
Dr. John Evans, Chief of Staff
Katrina Eaton, CEO
Linda Freed, Business Office Manager
Nancy Stritmatter, CNO
Assignment
Given the scenario, your role and the information provided bythe key players involved, it is time for you to make adecision.
What will you do? Whose advice makes the most sense to you inthis situation, and how will you proceed?
Understanding
Here you are to demonstrate a strong grasp of the problem athand. Also, demonstrate an understanding of how the course conceptsapply to the problem.
Provide at least 3 paragraphs that contain at least 5sentences.
Analysis
Here, you are to apply original thought to solving the businessproblem. Also, apply concepts from the course material correctlytoward solving the business problem.
Provide at least 3 paragraphs that contain at least 5sentences.
Execution
Here you are to type your answer clearly and succinctly usingstrong organization and proper grammar. Use citations correctly
Provide at least 3 paragraphs that contain at least 5sentences
References
At the top of page 3, provide your references in APA Format.Provide at least 3 references for your paper.
Some of the Course Keys concepts
Financial planning
Strategic Budgeting
Strategic planning
Management and decision making
accounts receivable
Third party payers
Cost shifting
Incremental cost
Working capital
Current assets
current liabilities
financial statements
future trends
