Article 1 (Tracking your cash flow)
In the era of 1970s, "follow the money" was the mantra for supply chain managers for their budgeting activities and for negotiating the contracts, however, this changed to "show me the money" in 1996 (Barlow, 2010). Healthcare Purchasing News (HPN) publishes an annual budget and pricing forecast for seeking what is next in line for them. HPN appointed 4 of nation's biggest organization for sharing their pricing research with the industry. The organisations being Amerinet, MedAssets, Novation and Premier. In the tables that had been provided, it contained wide variances on the pricing projections of the range of products and services for applying in the calculations for the next year (Barlow, 2010). The current year edition of HPN will serve as the reference guide in negotiating the contracts. The CEOs, CFOs and COOs will appreciate the financials and would benefit from the research (Barlow, 2010).
Article 2 (A planning model for the short-tem management of cash)
The planning model for the short-term management requires identification of the balance in order to minimize the projected cash holding (Broyles, Khaliq & Mattachione, 2011). The limited rates and the discounted prices are considered to increase the monitored imperativeness of the service profounder of the health. The inter relationship between the financial leverage, the profits and the liquidity holds a particular importance. The sole objective is to enhance the leverage of the financial control and their liquidity and to improve their profitability by maintaining and minimizing the cash balance for short and the long costs (Broyles, Khaliq & Mattachione, 2011). The principle needs to develop a mathematical expectation of the planning model in order to estimate a plan regarding the cash balances in a short period span. The second objective is to examine in a broader way the target cash balance in order to receive a variation of the values in the model of the parameters. The models like Short cost function and Long cost functions help in short term management of cash (Broyles, Khaliq & Mattachione, 2011).
Article 3 (How the choice of issuing authority affects hospital debt financing costs)
Many non-profit hospitals are seen influencing the tax exemption bonds with the help of financial authorities who provide them the chance to access the bond market of any municipality (CE & PM, 2013) The state wide authority is the single organisation through which the non-profit organisation issue the tax exemption. The choice of authority often affects the debt of the financial cost of a hospital. The factors that determine this issue are the measurement of the capital cost, perceptions of the issuing authorities, analysis of the issues of the bond and lastly the steps implicated by the decision makers of the hospital regarding the financing debt (CE & PM, 2013)
Article 4 (How the choice of issuing authority affects hospital debt financing costs)
In today’s market, to raise capital, various non-profitable hospitals issue bonds which are exempted from tax with the help of financing authorities. In some areas state wide single authority can only issue this kind of bonds and in some areas many local authorities have the power to issue one (CE & PM, 2013) It is seen that, capital costs highly depends on the types of authorities who issue these bonds and the present number of authorities in the market. It is said that the bonds which are issued by state level authorities has a bit lower cost of capital. It is a fact that, in the market with few authorities issuing bonds TIG is seen higher but the yield can be same in the market full of such authorities and with lesser authorities (CE & PM, 2013)
Article 5 (Developing the Cash Budget)
Grace Medical Centre is one of the largest hospitals of the industry. The cash balance of this hospital has eroded by $25 million in last 6 months ("Essentials of health care finance (Book, 2011) [WorldCat.org]", 2017). This crisis of cash had been predicted by the controller while preparing the cash budget. A cash budget enables to predict the probable cash inflows and cash outflows during a particular period. Every business maintains certain amount of cash reserves for meeting its short term working capital needs, for funding capital investment needs and for meeting contingencies. A cash budget presents the sources of cash and the uses of the available cash. Forecasting the revenue is the most important aspect of cash budget which is mainly influenced by two factors. These two factors are the volume of the product and the price of the product ("Essentials of health care finance (Book, 2011) [WorldCat.org]", 2017)
References and Bibliography
Barlow, R. D. (2010). Effective downstream, upstream supply chain planning aids budget yield. Healthcare purchasing news, 10-14.
Broyles, R.W., Khaliq, A., & Mattachione, S. (2011). A planning model for the short-term management of cash. Health services management research, 24 1, 37-44.
CE, C., & PM, B. (2013). How the choice of issuing authority affects hospital debt financing costs.. Europepmc.org. Retrieved 20 July 2017, from https://europepmc.org/abstract/med/23678694
Essentials of health care finance (Book, 2011) [WorldCat.org]. (2017). Worldcat.org. Retrieved 20 July 2017, from https://www.worldcat.org/title/essentials-of-health-care-finance/oclc/646388471
