Financial Statements for the In-Home Health Provider Company
This discussion cover the "C" in the POLC model. Although control can be realized through policy, procedures, codes of conduct, and ethics, the control of finances is essential to sustainability of a business. Make sure to review the learning activities before responding to these two discussions.
Read the scenario and respond to the discussion question.
Scenario: Your best friend works for the In-Home Health Provider Company (IHHPC) in Palm Beach County, Florida. Your friend comes to you and explains that the IHHPC wants to expand the next year to Broward County and Dade County. Your friend explains the company is dealing with a cash flow problem, and if it is not figured out over the next 6 months, the IHHPC will not meet the asset requirement for the expansion loan. IHHPC revenue:
80% private pay patients
10% health insurance
10% long-term-care insurance policy
Process at IHHPC: Your friend explains this is how the IHHPC works. Say a patient called in and requested a nurse for 8 hours a day, 7 days a week, starting the next day. The company would send the nurse the next day, then bill the patient on a weekly cycle. The IHHPC would mail a statement to the patient at the end of the first week of service. By the time the patient would get around to writing a check and mailing it back in to the IHHPC, sometimes the company would not receive payment for 6 to 8 weeks. The company would be paying the nurse weekly although not receiving payment for services yet.
What would you advise your friend and why?
Financial Statements
Name
Institutional Affiliation
Course Title
Professor's Name
Date
Financial Controls
Looking at the prospects of the In-Home Health Provider Company, there is a possibility that its goal of expanding to Broward County and Dade County can happen if there are no changes to how income is generated. However, since the patient has not defaulted on payment and the nurses are paid on time, I would advise my best friend to continue working in the organization. To begin with, I would advise my friend to continue working at IHHPC because they receive timely payment. The organization's policy ensures that, despite the payment mode of the patient, the nurses are paid on time and in full. Thus, since his payment is not adversely affected by the mode of patient payment, my friend should continue working in the organization.
However, there is an increasing need for IHHPC to restructure its policy and precisely how patients should compensate or ...