Analyzing Financial State of Sentara Heart Hospital

Running head: PROPOSE ORGANIZATION FOR ANALYSIS
Southern New Hampshire University
Title: Final Project Milestone One: Propose Organization for Analysis
Name: Arnold Opoku
Course: Economic Principles of Healthcare
Professor: Dr. Jim Dockins
January 13, 2019

1PROPOSE ORGANIZATION FOR ANALYSIS
Introduction
The purpose of the paper is to analyze an organization to evaluate the financial state of
the healthcare organization. The chosen health care organization, in this case, is Sentara Heart
Hospital which is recognized as a destination medical center that offers quality and
comprehensive heart care treatment using advanced diagnosis and imaging for minimum
invasive heart surgery. It is situated in the Norfolk of Virginia and ranked 24th in the country in
term of heart care and medicine (Sentara.com., 2019)
Analyze the organization:
The chosen organization belongs to the healthcare industry where the financial
background is substantial since it has built a secure network of cardiac care through its integrated
system. The excellent financial performance is due to customer satisfaction because they offer
complementary heart services to the patient (Zipes et al., 2018). This hospital also provides
emergency cardiac care to the patient who lives nearest to the hospital and can be transferred
through the air transport in an emergency. Therefore, it serves excellent service with consistent,
high-quality care to the patient who is suffering from severe cardiovascular disease (Abbasi &
Murphy, 2015). However, health care expenditure of the hospital is also high because of
comprehensive diagnostic testing for emergency interventions and high-quality surgical types of
equipment.
Analysis of financial benefit:
Sentara health is not a non-profitable health care organization which serves Virginia and North
Caroline. It is based in Norfolk which helps cardiac service to approximately over two million

2PROPOSE ORGANIZATION FOR ANALYSIS
residents in Virginia. It operates more than a hundred sites including twelve acute care hospitals
of 1911 beds and 380 primary care and multi-specialty physicians (Sentara.com., 2019).
Therefore, the hospital gains the majority of the profit not only from the offline health care
services but also online health care services and emergency services. Due to excellent services of
the healthcare, a majority of the patient and family members who are suffering from the cardiac
disease want to spend money in recovery and high-quality surgical procedure (Zipes et al.,
2018). Therefore, regarding health care services, it is a profitable organization.
Economic impact:
Regarding the economic principle of demand and customer service, it has an excellent effect on
the economic performance due to fast and quality services to the patient with cardiac disease as
well as emergency service to the patient (White, 2016). Therefore, patients are willing to receive
the quality services from Sentara heart hospital where they can choose their choice of treatment
for the service.
The demand theory explains changes on behaviour of market agents’ influences demand of an
organization and hence, affects financial statements. In times of high demand, organizations
enjoy an advantageous position in the market which in turn strengthen the financial condition.
Opposite is the case during weak demand. In times of weak demand, the organization has a
relatively weak financial position (Cowell, 2018). Demand in the market however varies
throughout the year depending on cardiac condition of patients. The statement also reflects the
spike of the revenue in winter since in winter the exposure to the colder temperature causes
blood vessels to contract and may reduce blood flow to the heart that in turn give rise to the