Financial Analysis for Orlando Regional Hospital
Consider the following scenario; The community is suffering a significant decrease in employment. Employees are losing their health insurance. You anticipate a 10 percent decrease in patient revenue. However, your costs will not decrease to the same extent. You anticipate many of these individuals will continue to visit your emergency room (ER) and consume resources. The net impact is a significant increase in bad debt. 1-Write a summary of the strategic analysis for the hospital including an analysis of management, mission, vision, marketing strategies, and operational considerations. 2-The financial analysis will include a discussion of current and projected earnings, cash flow, and financing needs; as well as a series of recommendations to management regarding the necessary next steps to be successful n the event of a financial crisis. Include the operating and capital requirements the organization would need in order to navigate the crisis. Please include answers to these questions: 1. How often should a hospital management review the budget? 2. Can a hospital develop an austerity program with deep budget cost cuts without affecting patient care? 3. You manage an operating budget of approximately $500,000. You have been instructed to cut your budget by 10 percent two months after you had agreed to a barebones budget for the upcoming year. What do you do if you know that the cuts will affect patient care? Demonstrate the importance of cost management.