Business & Leadership: UIH Profit Flow, NCH, Problems & Solutions

This assignment focuses on analyzing business and leadership problems within Utica Integrated Health (UIH), an integrated health system operating eight businesses, including two hospitals. The assignment involves determining profit flow, calculating the gross operating profit for specific entities (Utica Hospital, Mooretown Hospital, and Lake Breeze Nursing Home), and computing the total administrative profit received by UIH. Additionally, the assignment addresses nursing care hours (NCH), offering recommendations for meeting NCH needs through special treatment procedures, improved equipment and supplies, and optimized staffing ratios. The analysis incorporates financial calculations and strategic considerations to enhance business operations and healthcare delivery within the UIH framework.

Running head: BUSINESS & LEADERSHIP PROBLEMS AND SOLUTIONS 1
Business & Leadership Problems and solutions
Student’s Name
Institutional Affiliation

BUSINESS & LEADERSHIP PROBLEMS AND SOLUTIONS 2
Business & Leadership Problems and Solutions
Assignment 1.
Business Models and Profit (new Problem #1)
Utica Integrated Health is an integrated health system that owns and operates eight
businesses, including two hospitals, as shown in the figure below. Assignment: (a) determine
profit flow, (b) using the data in Table 1, determine the gross amount of operating profit that
each entity gets to keep, and (c) compute the total administrative “profit” (share) received by
UIH.
Table 1. Profit and Administrative Share, FY2018
Entity Operating
Profit
Administrative
Share
Utica Integrated Health ??? Gets 5% (3
entities)
Utica Hospital $ 12,000,000 Gets 5%
Mooretown Hospital $ 8,000,000 Gets 15%
Lake Breeze Nursing Home $ 1,000,000 Gets 7%
Utica Home Health $ 1,500,000
Utica Care (multi-specialty group) $ 800,000
Woodlands Care (dementia care
facility)
$ 500,000
Mooretown Primary Care Group $ 300,000

BUSINESS & LEADERSHIP PROBLEMS AND SOLUTIONS 3
North Country Rural Health Clinic $ 75,000
Introduction
The profit flow in these regard is the profit realized from the operations of the facilities. In the
context of the UTICA INTERGRATED HEALTH, there are those facilities that are profit
oriented while others are nonprofit. The profit oriented facilities are the only ones which can be
considered when determining the profit flow of the UTICA INTERGRATED HEALTH. In these
regard, the profit flow is the accumulative amount that is realized from the profit oriented
facilities which include the “for profit” (Sethi & Thompson, 2000).
In the course of calculating the profit flow of the UTICA INTERGRATED HEALTH, the house
profit target and the Revenue variance need to be calculated.
To calculate the House profit target (HPT) one requires needs to multiply Revenue variance and
the goal percentage.
RV x GOAL% = HPT
In the calculation of the actual flow, the House profit valiance is divided by the revenue variance
HPV ÷ RV = FLOW%
$24175000/1870000
12.93
i. Gross profit
Definition: The gross profit is the total amount revenues that realized after all the expenses
which can be directly associated with the production of goods or services being deducted.
The deducted revenues are called the cost of Goods Sold (COGS) (Barua, 2001). COGS include
the expenses for the raw materials in case of production of goods but in the context to providing
the healthcare services, it include the labor which is operational cost but exclude the wages as
well as the overhead expenses.
The formula used to calculate the Gross operating profit is
Gross profit = Revenue - Cost of Goods Sold
In our case the gross profit for the three facilities is
Utica Hospital GP = 12000000 – 600000
= $11400000

BUSINESS & LEADERSHIP PROBLEMS AND SOLUTIONS 4
Mooretown GP = 8000000 – 1200000
= $6800000
Lake Breeze Nursing Home = 1000000 – 70000
= $930000
Explanation: The result is always the profit metric that indicates the value of the resources left
over to facilitate the operations of the business after accounting cost has been accounted for
simply producing a product or a service. It is in a technical way of measuring the profit.
ii. The total administrative profit received by UIH is the total
Is the addition of all the administrative profit which is
600000 added to 1200000 added to 70000
Which is $1870000
Assignment 2
Nursing care hour Elaboration
Nursing care Hours (NCH) is a standard measurement that is used in quantifying the nursing
time which is available for each and every patient considering the available Nursing staff.
Healthcare facilities considers all the time sheets for the past period of time may be one year and
obtain the average Nursing care Hours across all the 12 months. The formula that is used in the
preparation for their personnel budget for the following year.
NCH /5.4= 7560
93
NCH =7560∗5.4
93
NCH =438
Recommendation from the Presentation
In the course of satisfaction of the NCH needs, there should be some considerations and
implementations that should be brought on board. One of the consideration is the incorporation
of Special treatment and procedures. This implies that when the special treatment arrangements are made, the

BUSINESS & LEADERSHIP PROBLEMS AND SOLUTIONS 5
number of the patients and the time required to treat the patient is reduced. When this is carried out for some time,
the NCH needs will be met. Another consideration that should be put in place to solve the NCH issue and deal
with the needs is to make the available equipment, materials and supplies towards the healthcare facilities
(Tourangeau, 2016). Improving on the equipment, materials and supplies will reduce the amount of hours
spent by human resource in the treatment process. Reducing the number of employees and improving on the
quality of the health delivery the resources will be utilized and the profit increased.
The last thing that should be considered is the ratio of professional medical personnel to Nonprofessional nursing
personnel. The nursing personnel are paid at a higher rate compared to the nonprofessional nursing personnel
which has an impact to the overall budget cost (Twigg, 2011). When the cost is reduced, the finances can be
used to fund other purposes in the hospital.

BUSINESS & LEADERSHIP PROBLEMS AND SOLUTIONS 6
References
Barua, A., Konana, P., Whinston, A. B., & Yin, F. (2001). Managing e-business transformation:
Opportunities and value assessment. Sloan Management Review, 43(1), 36-44.
Sethi, S. P., & Thompson, G. L. (2000). What is optimal control theory? (pp. 1-22). Springer US.
Tourangeau, A. E., Giovannetti, P., Tu, J. V., & Wood, M. (2016). Nursing-related determinants
of 30-day mortality for hospitalized patients. Canadian Journal of Nursing Research
Archive, 33(4).
Twigg, D., Duffield, C., Bremner, A., Rapley, P., & Finn, J. (2011). The impact of the nursing
hours per patient day (NHPPD) staffing method on patient outcomes: a retrospective
analysis of patient and staffing data. International journal of nursing studies, 48(5), 540-
548.