Tag: Healthcare Finance

If inflation in medical equipment is averaging 10 percent per year and you wish to finance only 20 percent of your replacement needs with debt, what amount of replacement reserves should you target for year-end?

Healthcare Finance

Calculating Key Budget Items

In MS Excel, calculate the following 2 key budget figures based on the available data:

You are reviewing your targets for short-term cash reserves next year. You wish to carry at least twenty days cash on hand. If annual budgeted cash expenses are $48,000,000, what amount of short-term cash reserves should be targeted?

You have projected depreciation expense to be $1,000,000 in the next fiscal year 3 with year-end accumulated depreciation balances being $5,000,000. If inflation in medical equipment is averaging 10 percent per year and you wish to finance only 20 percent of your replacement needs with debt, what amount of replacement reserves should you target for year-end?

Do you believe that grouping expenses by diagnoses and procedures (based on a type of services provided) is better to use for control and planning than grouping expenses by care setting (based on the location of service provided)? If so, why?

Discussing Grouping Expenses For Healthcare Finance

Do you believe that grouping expenses by diagnoses and procedures (based on a type of services provided) is better to use for control and planning than grouping expenses by care setting (based on the location of service provided)? If so, why?