MMHA 6999 Strategic Planning in Health Care-Value the Local Community
ABC Hospital is a rural facility in Medford, Oregon that competes with two other hospitals in delivering quality patient care in the Rogue Valley. One of the competing hospitals provides cancer treatment services similar to ABC Hospital and has been gaining a larger market share in the last 12 months because of its television and billboard ads.
Recently, the local news station covered a story about a report published by an independent research company stating that in the last five years, the Rogue Valley has experienced a steady increase of residents with pancreatic and testicular cancer. In response to this report and because of the shrinking market share, the chief executive officer (CEO) of the hospital has tasked the chief strategy officer (CSO) and the chief financial officer (CFO) with exploring whether it should make additional investments in cancer treatment services that will allow the organization to increase its capacity to serve more patients and gain a larger sector of the market.
Based on their analysis, the CSO and CFO have presented you with the following two options to review prior to the meeting with the CEO:
- Option 1:ABC Hospital invests $11,995,000 in the development of a new state-of-the-art cancer treatment center. Based on their estimates, the first year cash flow will be $2,000,000, the second year cash flow will be $4,000,000, the third year cash flow will be $5,000,000, and the fourth year cash flow will be $8,000,000. The expected return of 8.9% is used as the discount rate.
- Option 2:ABC Hospital invests $5,095,000 in a joint venture with a reputable oncology group and the hospital agrees to a 55% interest in the joint venture. Based on the estimates, the first year cash flow will be $1,500,000, the second year cash flow will be $3,000,000, the third year cash flow will be $4,500,000, and the fourth year cash flow will be $6,500,000. The expected return of 8.9% is used as the discount rate.
Answer:
width: 47.8751%;" width="201">Years | Cash inflows for option 1 (in $) |
| 0 | -1,19,95,000 |
| 1 | 20,00,000 |
| 2 | 40,00,000 |
| 3 | 50,00,000 |
| 4 | 80,00,000 |
| Cash and cash equivalents | $2,275,884 |
| Short-term investments | $3,945,998 |
| Receivables, less doubtful accounts | $4,958,923 |
| Other current assets (inventory) | $2,667,391 |
| Total current assets | $13,848,196 |
| Limited-use assets | $2,397,421 |
| Property and equipment | $4,510,961 |
| Other long-term assets | $2,301,810 |
| Total assets | $23,058,388 |
| Current portion of long-term debt | $850,000 |
| Accounts payable | $3,120,692 |
| Estimated third-party settlements | $962,908 |
| Accrued salaries, wages, and fees | $5,837,624 |
| Other accrued liabilities | $2,163,187 |
| Total current liabilities | $12,934,411 |
| Long-term debt, net | $2,450,873 |
| Other noncurrent liabilities | $938,578 |
| Total liabilities | $16,323,862 |
| Unrestricted | $400,000 |
| Temporarily restricted | $600,000 |
| Permanently restricted | $5,734,526 |
| Total net assets | $6,734,526 |
| Total liabilities and net assets | $23,058,388 |
| Particulars | Amount (in $) |
| Monthly utilities | 590 |
| Annual utilities | 7,080 |
| Monthly health/wellness staff | 2,500 |
| Annual health/wellness staff | 30,000 |
| Monthly arts/crafts staff | 2,000 |
| Annual arts/crafts staff | 24,000 |
| Monthly supplies | 800 |
| Annual supplies | 9,600 |
| Monthly fitness equipment maintenance contract | 200 |
| Annual fitness equipment maintenance contract | 2,400 |
| Total annual fixed cost | 73,080 |
Buy MMHA 6999 Strategic Planning in Health Care-Value the Local Community Answers Online
Talk to our expert to get the help with MMHA 6999 Strategic Planning in Health Care-Value the Local Community Answers to complete your assessment on time and boost your grades now
The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.
