Impact of Financial and Strategic Planning

The Impact of Financial and Strategic Planning

Outcomes Addressed in this Assignment:

· Describe the key components of a financial plan

· Define financial and strategic planning

· Explain the difference between a simple budget and a flexible budget

· Describe the use of variance analysis in the budget creation process

addressed in this Assignment:

Explain the methodologies and processes used in preparing budgets for health care organizations.

Apply research to create original insights and/or solve real-world problems.

Utilizing Gapenski, L. C. (2012). Healthcare finance: An introduction to accounting and financial management. Chicago, Ill: 

For the assignment, you are considering the purchase of a new MRI machine for Bayside Memorial hospital. Think about what types of patients you will be seeing, what types of care you will provide, and the members of the team that you have assembled. Remember that the financial analysis provides much of the guidelines for all decision making in the purchase decision.

Instructions

Using the chart of cash revenues and costs read and explain the results of the cash flow analysis. Describe incremental cash flow. Explain sunk costs, opportunity costs, strategic value and inflation effects. Then provide your decision on whether to make the purchase or not.

Requirements

· Follow APA formatting for the title and reference page, as well as APA formatting within the paper itself (Times New Roman 12-point font and properly double spaced).

· The minimum page limit is 2 pages or 800 words.

· Include at least one reference. The course textbook may count towards the reference requirement for this Assignment. All references will follow APA format