Capital Decisions

Discuss why is it more difficult for healthcare companies to get expansion financing in the current economic situation?

Every day it becomes harder for the healthcare companies when it comes to the financing sector. It is hard for healthcare companies to attain expansion at the current economic standards. It is because there are frequently changing laws and regulations from the government. Moreover, there are changes in reimbursement levels which are making such organizations to be consumer centric.  There are also fluctuations and inflations in the current economic system therefore making it challenging for healthcare organizations to attain financial expansion (Burtless & Aaron, 2013). The healthcare industry is facing a great depression. Healthcare organizations require a lot of funding to remain in operation.

Explain the 2 major issues with the Caribbean expansion the turnaround company found and why do you think they were brought up?

The Caribbean expansion is facing great depression which is hindering the expansion as well as operations. In this case, the liquidity of cash is tighter, and the access of capital is lesser. Therefore, companies have an issue in borrowing funds for facilitating operations and expansions at a reasonable interest Moreover, there are few sources of funding thus hindering the expansion of companies in Caribbean due to lack of capital (Yellen et al., 2014).

Describe why healthcare companies need to look beyond their banks to secure financing?

Healthcare companies need to look beyond the banks for financial assistance due to a variety of reasons. First and foremost, the structure of healthcare is rapidly changing, and the needs associated with healthcare companies in terms of finance are expanding thus there will be need for more sources of funding. Nonetheless, there is increment in the competitive pressure among healthcare companies in terms of reimbursement pressure thus there is need for more financial sources to cope up with the competitive environment (Etats-Unis et al., 2016). Moreover, there is need for healthcare companies to find other financing sources apart from banks to enhance the viability of the healthcare systems through secure funding sources.

Article Review #2

Do you think the authors make a good case for expanding healthcare providers’ methods of calculating break-even analysis? Why or Why Not?

A break even takes place when the revenues of an organization cover the expenses of that organization. I think the authors make a good point for the expansion of techniques utilized in the calculation of break-even analysis by healthcare providers (Keller et al., 2016). It is because; break-even analysis is among the top tools that are utilized in the determination of the profitability rates in an organization. Having more techniques of calculating break-even analysis will help such organizations in having comprehensive and extensive guides to assist in setting targets in terms regarding revenue by the organization thus helping the organizations to soar higher by making higher profits.

Discuss non-financial factors do the authors believe need to be included in break-even analysis?

While calculating profitability rates in the organization using a break-even analysis, it is essential to not only put into consideration the financial elements but to also include the non-financial elements which are essential. The non-financial factors are meeting the identified requirements regarding current as well as future legislation, anticipation of handling future risks and threats like protection of intellectual property against any form of potential competition, matching the identified industry demands with good practice, putting into consideration the impact regarding the environment in terms of potential investments and investors among other non-financial elements of calculating a break-even analysis (In Stanhope & In Lancaster, 2016).

Explain how the Affordable Care Act affects break-even analysis

Affordable care Act is identified as a legislation which has made a variety of efforts in reforming the healthcare associated system to undertake the management of the healthcare related spending in the United States of America (In Thompson et al., 2015). The identified act is prominent since it has led to a reduction of the fixed costs related with a variety of companies thus vital to the minimization in the break-even associated units involved in production since there is a decrement enhancement in the fixed costs while the engagement margins remains the same.

Ethical Scandal

Ethical issues in the healthcare industry are common. Almost every decision that is carried out in the healthcare industry possesses an ethical issue. There are five ethical issues that impact the healthcare industry according to the given article. First and foremost, there is the ethical issue which entails balancing of care quality along with efficiency. Most of the challenges present in the healthcare industry in the future will be associated with the general challenge involving the balance of quality along with safety. Secondly, there is improvement of access to care. The issue involving the provision of every person with access to fundamental medical care remains a major concern in the healthcare industry. Nonetheless, there is building as well as sustaining of the healthcare associated workforce of the coming future. The question is whether there will be adequate individuals in the future who will not only be competent and compassionate in healthcare industry but will stay in it and offer the necessary care to patients. The issue of workforce is of concern since healthcare workforce ought to be committed in offering the best to its patients. Nonetheless, there is the addressing of the end-of-life associated issues. Furthermore, there is another ethical issue which entails the allocation of limited medications as well as donor organs. Medication associated shortages usually occur when there are inadequate incentives thus it is essential to undertake fixing of the perverse incentives to deal with this kind of prevailing issue.

 





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