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Health Care Management

Taking care of your organization’s financial health

Professor：Chen-Chung Ma Student︰ Ya-Wen Yang (Amy)

Student number： 9651004M

Date： 97/05/14

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Introduction

An organization's financial performance

must be sufficient to meet the cash flow

requirements of the strategic plan .

Maintain or improve the financial integrity

of the organization within an appropriate

credit and risk context.

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Six key concepts

1.Effectively Managing the Capital Cycle

2.Analyzing and Boosting Creditworthiness

3.Ensuring Fully Integrated Strategic and

Financial Planning

4.Effectively Allocating Capital

5.Strategic Budgeting

6.Achieving the Right Capital Structure

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Concept 1. Effectively Managing

the Capital Cycle

select strategic options

monitoring

option implementation

financial planning

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The capital cycle includes three essential components

A continuous, integrated, strategic financial

planning process .

A process for achieving a capital structure .

A process for allocating capital .

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A brief summary

To succeed in a competitive environment,

an organization's capital cycle must be

competently managed.

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Concept 2. Analyzing and Boosting Creditworthiness

An organization depends on its ability to

raise affordable capital in the debt markets.

Creditworthy organizations have improved

capital market opportunities .

Creditworthy organizations are market

consolidators .

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Key creditworthiness factors

governance and management

market and strategic position

financial performance

debt position

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A brief summary

Healthcare organizations must understand

the importance of creditworthiness and

maintain a strong credit position will do

well in the future.

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Concept 3. Ensuring Fully Integrated Strategic and Financial Planning

A healthcare organization's strategic mission

must be supported by integrated strategic and

financial planning.

An organization's strategic plan focuses both

on external market needs and how best to

meet those needs with the organization's

resources .

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A brief summary

Organizations identify the level of operating

change required to meet the profitability

targets and determines where the capital

required to implement selected strategies will

be obtained in the short term and the long term.

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Concept 4. Effectively Allocating Capital

In an environment of scarce resources,

healthcare executives must allocate available

capital .

Healthcare organizations have sufficient

capital capacity to meet their comprehensive

strategic capital requirements.

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net present value (NPV)

A core technique used in corporate finance

net present value (NPV) analysis

NPV analysis distills the financial ebbs and

flows of a project to a single dollar value.

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Concept 5. Strategic Budgeting

Strategic budgeting must be： quantify

specific

measurable

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Eight key steps of strategic budgeting

Develop the strategic and financial plans

Communicate strategic and financial objectives

provide feedback about targets

Develop a first-pass budget

Review the first-pass budget

Make adjustments and finalize the budget

Use the budget as a management tool

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A brief summary

An integrated budgeting process requires the

participation of department-level managers.

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Concept 6. Achieving the Right Capital Structure

The strategic and proactive approach to

capital structure management.

Capital structures can lower the overall

cost of capital and can maximize the return

of assets versus the cost of liabilities.

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A brief summary

Creatively managed capital structure has

become a significant competitive advantage

for many hospitals.

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SummaryAchieving financial success requires an

executive team .

A financially sound business plan that

generates a profitable bottom line is a

prerequisite for meeting the rapidly expanding

healthcare needs of patients and communities.

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Thanks for your attention!

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Q&A

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proverbs

I can’t take it any more !

Turn over a new leaf !

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Allen is a drug dealer.

Judy is Allen’s girlfriend.

John is Judy’s boyfriend afterward.

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Someday…

Judy ： Could you stop to sell the drugs ?

Allen ： It’s man’s business.

Don’t interfere !

So... Judy says… I can’t take it any more !

I’ll break up with you.

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After one month…

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Allen was caught by the police

and in prison…

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He was self-reflecting in prison.

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Five years later…

He is discharged from the prison

and decide to turn over a new leaf

in order to reverse her girlfriend.

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But………..

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Judy has gotten together

with John…