Week5Nov.20.docx
PLEASE READ THE INSTRUCTIONS VERY VERY CAREFULLY IF YOU HAVE ANY I MEAN ANY QUESTIONS PLEASE MESSAGE ME AND I CAN HELP!!!!
Part 1
You are to write a one-to-two-page paper on Value Based Purchasing Program offered by the Federal Government. You are to describe what it is and how it started. You will also need to discuss the risks and benefits for organizations who are involved with the process.
· Responded to all five content areas
· Provided high level of detail in responses for content areas
Format: Informal paper – Submit document in .doc or .docx format, Times New Roman 12 pt. font, double-spaced, 1-inch margins. Cover page to include, centered on page
PART 2
Those ratios can be found on page 128 of the textbook. Students will be required to create an Excel Document with each of these calculations based on the financial information provided in Appendix 33-A for Metropolis Health System page 471. Will be submitted as an Excel document
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Here are some clarifications since the are some issues with the textbook
1. On quick ratio, do we assume the patient account receivables is net, to add into our cash.
Yes, you do
2. On the Days on cash on hand. The book says to use total operating expenses and subtract it says general services based on the arrows, however, this does not make sense as the numbers do not correlate. So wondering what number we are to subtract.
It is depreciation what you need to subtract
3. Days receivable: It uses the total operating revenue and times by a percentage that was obtained elsewhere. Are we to use 90% or is there a percentage that can be found? I did not see it in the appendix.
Just use 100%
4. Debt service Coverage ratio-It has us divide by maximum annual debt service, however, in the book its states this number is derived elsewhere. Where do we find this for our assignment?
You can find the dollar amount on page 482 of the book
5. On the debt service coverage ratio is shows change in unrestricted net asset + depreciation – amortization + interest for the numerator.
For the problem please do include amortization and minus it
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