Comparative Analysis Nursing Home Care
Group Study - Student #4: Questions 17.6 (Page 638)
a. What is the difference between trend analysis and comparative analysis?
Trend analysis examines the ratios of a given organization over time and hence gives managers insights into how an organization’s financial and operating condition has changed over time. Comparative analysis compares the ratios of a given organization with other entities, which could be individual businesses or industry averages.
b. Which one is more important?
Both analyses are equally important. Neither method is more important than the other one. A thorough analysis will include both trend and comparative analyses.
References:
Gapenski, L. C. (2012). Healthcare finance: An introduction to accounting and financial management (5th ed.). Chicago, Ill: Health Administration Press.
Nursing Home Care …show more content…
Nursing home care is a provision of long term care to individuals that lack some degree of functional ability.
“Long term care is a hybrid of healthcare services and social services and nursing homes are major source of such care”(Gapenski, 2012, p 14). Nursing home care is a growing healthcare industry because the majority of people from baby boomer generation will be utilizing the nursing home care. Estimated growth in healthcare expenditure for year 2030 is 20 percent; a drastic increase compared to 6 percent in 2010. Average cost for nursing home care is $50,000 a year in United States and it greatly varies depending on the state you live (AARP, 2007). The main sources of revenue come from the third party payers such as government through Medicare and Medicaid programs. Other revenues for nursing home care include self-insurers and third party payers such as Blue Cross/Blue
Shield.
Appropriate utilization of financial information is vital in nursing home care industry. When accepting residents, it is the general procedure to make sure the person has means to pay for the services. This information helps healthcare administrators and chief financial officers or patient accounts managers (depending on the size of the facility) in measuring the resources, operations and revenues. Financial information also helps them make better financial decisions when it comes to cost allocation, pricing/service decisions and planning/budgeting (Gapenski, 2012).
The primary role of finance in a business is to maximize the efficiency and value of the organization by planning, acquiring and utilizing their resources to the highest potential (Gapenski, 2012). This is true for nursing home care facilities and best use of four C’s would yield successful outcomes.
Reference:
Gapenski, L. (2012). Healthcare finance: An introduction to accounting and financial management (5th ed.). Chicago, IL: Health Administration Press
AARP (2007). Nursing Homes: Cost and Coverage. Retrieved From: http://assets.aarp.org/external_sites/caregiving/options/nursing_home_costs.html
a. What is the difference between trend analysis and comparative analysis?
Trend analysis examines the ratios of a given organization over time and hence gives managers insights into how an organization’s financial and operating condition has changed over time. Comparative analysis compares the ratios of a given organization with other entities, which could be individual businesses or industry averages.
b. Which one is more important?
Both analyses are equally important. Neither method is more important than the other one. A thorough analysis will include both trend and comparative analyses.
References:
Gapenski, L. C. (2012). Healthcare finance: An introduction to accounting and financial management (5th ed.). Chicago, Ill: Health Administration Press.
Nursing Home Care …show more content…
Nursing home care is a provision of long term care to individuals that lack some degree of functional ability.
“Long term care is a hybrid of healthcare services and social services and nursing homes are major source of such care”(Gapenski, 2012, p 14). Nursing home care is a growing healthcare industry because the majority of people from baby boomer generation will be utilizing the nursing home care. Estimated growth in healthcare expenditure for year 2030 is 20 percent; a drastic increase compared to 6 percent in 2010. Average cost for nursing home care is $50,000 a year in United States and it greatly varies depending on the state you live (AARP, 2007). The main sources of revenue come from the third party payers such as government through Medicare and Medicaid programs. Other revenues for nursing home care include self-insurers and third party payers such as Blue Cross/Blue
Shield.
Appropriate utilization of financial information is vital in nursing home care industry. When accepting residents, it is the general procedure to make sure the person has means to pay for the services. This information helps healthcare administrators and chief financial officers or patient accounts managers (depending on the size of the facility) in measuring the resources, operations and revenues. Financial information also helps them make better financial decisions when it comes to cost allocation, pricing/service decisions and planning/budgeting (Gapenski, 2012).
The primary role of finance in a business is to maximize the efficiency and value of the organization by planning, acquiring and utilizing their resources to the highest potential (Gapenski, 2012). This is true for nursing home care facilities and best use of four C’s would yield successful outcomes.
Reference:
Gapenski, L. (2012). Healthcare finance: An introduction to accounting and financial management (5th ed.). Chicago, IL: Health Administration Press
AARP (2007). Nursing Homes: Cost and Coverage. Retrieved From: http://assets.aarp.org/external_sites/caregiving/options/nursing_home_costs.html