University of Maryland Medical System (UMMS) Financial Management
M4 – Final Case Project
Running head: FINANCIAL MANAGEMENT
Assignment Overview
• You have reached the end of this project. The last section will cover the financial management aspect of your organization/facility. In this module, you will submit your completed comprehensive paper. Construct, research, and formulate a health care organization/facility.
• Integrate, apply, and synthesize knowledge through cross-functional areas of regulatory compliance, health care law, and health care ethics.
Case Assignment
1. Community Benefit Spending
a. In at least 1 page, identify how your non-profit organization(UMMS) will spend money helping your community.
2. Balance Sheet (Norwicki, 2018, pp. 51-54)
a. Create a hypothetical (realistic) balance sheet for your organization/facility. The balance sheet should cover two years, the current year and the subsequent year. The balance sheet should show a vivid increase in total net assets.
i. Explain the entries in your balance sheet.
ii. Calculate your Assets for both years.
3. Statement of Operations (Norwicki, 2018, pp. 54-57)
a. Create a hypothetical (realistic) statement of operations for your organization/facility. The statement of operations should cover two years, the current year and the subsequent year.
i. Calculate the Operating Margin and explain your result.
4. Strategic Planning, Operational Planning, & Budgeting (Norwicki, 2018, pp. 299-326)
a. Norwikci (2018) outlined a 22-stage Corporate Planning Process (Exhibit 13.1, pp. 299-300). Review the process outlined and identify how your organization/facility has met/will meet the stages outlined in the following sections:
i. Strategic Planning (Stages 1-8)
ii. Operational Planning (Stages 9-13)
iii. Budgeting (Stages 14-17)
5. Recommendations and Conclusion
Final Paper Submission
Incorporate all previous feedback and aggregate all chapters into one comprehensive paper, with the following pages, headings (bold font), and subheadings (italic font) as follows:
1. Title page
2. Table of contents
3. Organization/Facility Development
a. Health Care Organization/Facility
b. Data Gathering & Examination
c. Organizational Dynamics and Structure
d. Recommendations and Conclusion
4. Health Care Delivery, Information Systems, & Quality Assurance
a. Health Care Delivery and Models
b. Information Systems
c. Quality Assurance
d. Recommendations and Conclusion
5. Regulatory Compliance, Health Care Law, and Ethics
a. Regulatory Compliance and Health Care Law
b. Health Care Ethics
c. Recommendations and Conclusion
6. Financial Management
a. Community Benefit Spending
b. Balance Sheet
c. Statement of Operations
d. Strategic Planning, Operational Planning, & Budgeting
e. Recommendations and Conclusion
7. References
8. Appendices (if applicable)
Assignment Expectations
1. Conduct additional research to gather sufficient information to justify/support your analysis.
2. Case papers should be at least 6 pages, not including the title and reference pages.
3. Support your paper with peer-reviewed articles with at least 5 references.
University of Maryland Medical System (UMMS) Financial Management
Student Name
Department, University
Course Code: Course Name
Professor’s Name
Due date
University of Maryland Medical System (UMMS) Financial Management
Background Information/Introduction
The financial management aspects of the UMMS should inform the organization’s strategic efforts, community health benefits investment, and the realization of strategic objectives. This report addresses the UMMS’s community health benefit expenditure, a hypothetical balance sheet, and a statement of operations evaluates the strategic and operational planning and budgeting practices and offers recommendations and conclusions to inform the strategic management of nonprofit healthcare organizations.
Community Benefit Spending
Community benefit incorporates activities tailored to meet population needs as well as priorities fundamentally via illness prevention and health status improvement, including healthcare costs reduction measures, donations of property, funds, or other resources contributing to the community priorities, in-kind or financial support of public medical programs, health awareness, screening, and preventive measures, as well as healthcare services offered to underserved or vulnerable groups (University of Maryland Medical System, n.d.). As a nonprofit organization, the UMMS would spend its donations and educational or research funds to help the communities and patients that need urgent medical attention to enhance their health outcomes. In this context, the UMMS partners with the organizations such as nonprofit organizations and government institutions to avail healthcare to the communities and surrounding Maryland. The organization has funding priorities to help the communities achieve better health and wellness outcomes (Singh et al., 2018). The organization’s vision is anchored on delivering services that support academic, clinical, and service excellence through better innovations and compassion. The organization will spend money helping communities in Maryland by investing in community health assessment projects geared to address social determinants of wellbeing and health outcomes.
There are increased transparency and disclosure requirements regarding the hospital’s investment in community benefits. The facility would uphold greater transparency in the use of its resources as well as community health needs evaluations to establish vulnerable populations and address their needs. The healthcare organization will invest in subsidized or free care to vulnerable members of the community, investments within Maryland communities, and research or educational activities for medical professionals. The facility will conduct community health needs assessments to establish and address local needs. In this way, the UMMS would provide mobile clinics to bring services closer to the people and thus impact their communities positively. The nonprofit facility could justify its sizeable and favorable tax benefits by investing in community benefits (Chaiyachati et al., 2018).
UMMS Balance Sheet
University of Maryland Medical System
Balance sheet
As at
2021(000)
2020(000)
ASSETS
Current assets
Cash
$248
$560
Temporary investments
90
60
Net Receivable
7072
7434
Inventory for UMMS
350
280
Prepaid expenses
64
80
Current assets total
7824
8414
Non-current (assets)
Land, plant, and equipment
13960
13160
Depreciation accumulated
-3460
-3320
land and Equipment (net)
10500
9840
Investments (Long-term)
1218
1980
Noncurrent assets (other)
226
218
Noncurrent assets total
11944
12038
Total assets
19768
20452
LIABILITIES & NET ASSETS
Current Liabilities
Accounts payable
$604
$740
Notes payable
690
670
Accrued expenses payable
1742
816
Deferred revenues
20
30
Estimated third-party adjustment
274
448
Current portion of long-term debt
368
356
Total current liabilities
3698
3060
Noncurrent liabilities
Long-term debt, net of current portion
7200
7200
Total liabilities
10898
10060
NET ASSETS
Unrestricted net assets
6570
7792
Temporarily restricted net assets
1500
1400
Permanently restricted net assets
800
1200
Total net assets
8870
10392
Total liabilities and net assets
19768
20226
Assets are arrived at by adding both liabilities and the owner’s equity. Therefore, the bookkeeping equation Asset=liabilities + Owner’s Equity. The net assets in total increased from $8870 in the year 2020 to $10392 in the financial year 2021. This shows there was a vivid increase in net assets. Assets are the financial or economic resources providing or anticipated to offer economic benefits to the facility. Liabilities are the debts or financial obligations of the facility. Net assets are the difference between the facility’s assets and liabilities, representing the owners’ and others’ economic interests within the healthcare organization (Nowicki, 2018a).
UMMS Statement of Operations
2021 (000)
2020 (000)
REVENUES
Revenue of patient Gross (non-GAAP)
$26062
$25220
Contractual adjustment provision (non-GAAP)
-8418
-8166
Charitable care provisions (non-GAAP)
-840
-816
Service revenue patient(net)
16804
16238
Bad debt allowance provisions
-1200
-9526
Service revenue net patient less bad debt provision
15604
15286
Revenue (premium)
800
0
Other operating revenues
880
894
Total revenue of operations
17284
16180
EXP...
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