Running Head: healthcare services industry ASSIGNMENT: HEALTHCARE SERVICES INDUSTRY NAME: PROFESSOR: UNIVERSITY: COURSE TITLE: DATE: Question1:
Healthcare services industry 2 Cost is the key driver that cause healthcare organizations to merge. Healthcare organizations always experience issues with spending. Today, many industries face a number of obstacles in achieving or maintaining profitability. Healthcare industries is among these industries. Profitability itself is a challenge under normal circumstances but mostly during fragile economic times. Rising costs and uncertain revenue streams have numerous healthcare organizations comprehensively apprehensive. Traditionally, healthcare organizations put more emphasis on revenue management than on costs to ensure profitability. However, emphasis on revenue is becoming increasing harder to plan, manage and execute due to the confusing nature of healthcare reform, community perception, complex insurance reimbursements, political concern and government red tape. [Gau13] On the other hand cost management has also become a discussion topic in the last one decade but it has not being prioritized as a result of limited administrative resources. Question2: A financial analysts usually considers merger as the best way to achieve the financial and the operation growth for the small businesses. The Financial analysts will always advice for the companies to merge, so that they can obtain the financial collaborations, in order to gain the majority market share as well as in order to improve their team’s leadership. Analyzing the financial statement from both the companies is usually the first step that the financial analysts always considers during the merging, this is done to ensure that the all transactions will make financial sense. The financial analysts will use the following determinants to decide whether a favorable financial result for the organization are obtained through the merging:
Healthcare services industry 3 Financial Statement: The Company’s target financial statement is usually the first step used to evaluate the merger’s financials. If both the healthcare organizations are already discussing the merger, every healthcare organization will be required to sign an exchange financials after sighing a non-disclosure document. The analysts usages both the forward looking and historical financials during the analyzing the financials of the merger, in order to see how the companies has been performing and how they will be expected to perform in future.[Jan10] Income Statement: this will be used to illustrate the financial stability of the health care
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