Healthcare Planning and Financial Analysis: A Palmetto Health Report

This report presents a comprehensive analysis of Palmetto Health's healthcare planning strategies, financial performance, and operational benchmarking. It covers various aspects, including concepts of healthcare, competitor analysis focusing on South Carolina Department of Healthcare and Human Services and Greenville Health Systems, quality of services for both medical providers and patients, financial analysis, accounting information adhering to US GAAP standards, billing and coding processes, revenue determination with third parties through ERP integration, and key healthcare accounting terminologies. The report also includes a comparative financial benchmark against Greenville Health System, operating benchmarking to identify areas for improvement, cost finding analysis related to operational activities and wages, breakeven analysis, working capital management, and a budget overview to improve financial performance with a 10% return to the community. The document emphasizes Palmetto Health's commitment to improving healthcare services and financial outcomes.

Running head: HEALTHCARE PLANNING- PALMETTO HEALTH
Healthcare Planning- Palmetto Health
Name of Student:
Name of University:
Author’s Note:

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Table of Contents
Concepts of healthcare:....................................................................................................................2
Competitor Analysis:.......................................................................................................................2
Quality of Services for Medical Provider:.......................................................................................3
Quality of Services for Patients.......................................................................................................3
Financial Analysis...........................................................................................................................4
Accounting Information...................................................................................................................4
Billing and Coding...........................................................................................................................5
Revenue Determination with Third Parties.....................................................................................6
Healthcare Accounting Terminology..............................................................................................6
Comparative Financial Benchmark.................................................................................................7
Operating Benchmarking.................................................................................................................8
Costing Finding...............................................................................................................................8
Breakeven Analysis.........................................................................................................................8
Working Capital Management.........................................................................................................9
Budget............................................................................................................................................10
References......................................................................................................................................12

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Concepts of healthcare:
Healthcare is one of the most important industries in the world, which caters to the
requirements of various people around the world, from the needy to rich. It encompasses the
prevention as well as the necessary treatment of all the diseases, plaguing mankind. There are a
range of concepts with the topic of healthcare, some of which are:
 Chronic disease: It refers to disease, illness, or any similar condition which increases the
risk of long term disability, handicap, or death. Its occurrence and severity might vary
from time to time (Bohren et al., 2015)
 Accessibility: It refers to that aspect of health services or health facilities which increases
the health capabilities of people by reaching any health care expert, in terms of ease of
location, time, and approach (Craglia& Maheswaran, 2016).
 Population health: It is not merely the summation of the health of individuals; it also
includes the deliberation of the kind of the circulation of health systems across the
population.
 Primary care: It refers to that aspect of any health service system which promises a
person due care over time to a well-defined population, availability of basic healthcare
prior to providing advanced or any kind of secondary health support.
Competitor Analysis:
Residents of South Carolina receive most of the healthcare services from the South
Carolina Department of Healthcare and Human Services, Palmetto Health and from Greenville
health Systems. Most of the healthcare services in the area is distributed and provided by these

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main three. They cater to the healthcare as well as health related demands of the South Carolina
residents. The South Carolina Dept. of Health and Human Services chiefly looks after the health
insurance and other health related matters. Palmetto and Greenville mainly look after various
kinds of diseases and has separate functional areas of health such as breast care, Geriatrics,
Musculoskeletal, Neuroscience, Orthopaedics and many others. Due to the interference of the
government, in the form of the South Carolina Dept. of Health and Human services, the
monopoly of Palmetto and Greenville is kept in check, ensuring the overall welfare of the
residents of South Carolina.
Quality of Services for Medical Provider:
The Medical Providers at Palmetto Medical Group are dedicated to providing its patients
with the utmost quality of healthcare services. Recently, the company has also launched a
program named ChartSpan for its Medicare patients which round the clock healthcare services.
ChartSpan is an extension of their office. This is just a tiny glimpse of the quality of services
provided by Palmetto to its patients (Palmetto Health Richland, 2018). The medical team and the
medical practitioners provide top notch medicine related services, with the intention of ensuring
maximum benefit to the patients. Along with this, it also provides the following:
 24/7 support services of medical experts.
 Assistance in managing the appointments and prescriptions of the patients.
 Hassle-free organisation of the medical records of the patients.

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Quality of Services for Patients
Palmetto Health Richland is dedicated in improving the physical, emotional as well as the
spiritual health of all individuals and communities which are being served by them. It aims in
providing due care with fineness and concern, and ensures in working with persons who share
their fundamental commitment which is the improvement of the human condition. At Palmetto
Health, top quality services for patients and their doctors are persistently followed. The
company’s commitment towards community health and well-being leads the way the company,
its services, partnerships and investments are done (Palmetto Health, 2018). Palmetto’s health
care professionals, employees and helpers are appreciated and acknowledged for their
exceptional contributions. This helps in providing top notch round the clock services to its
patients. This makes the company; one of the most followed one in the region of South Carolina.
Financial Analysis
As per the annual report of Palmetto Health shows that the business is committed towards
improving the financial performance of the business and thereby follows the policy of provide a
10% return to the community on the annual bottom line. In addition to this, the management is
committed towards innovative approaches for the purpose of improving the financial
performance of the business (Cucchiella, D’Adamo & Gastaldi, 2015). The annual report of the
company specifies that the business has efficiently invested in the healthcare services which are
offered by the business over the 20 years of service which the business has provided. The
financial performance of Palmetto Health has improved over the years which is also due to the
various services which are offered by the business.

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Accounting Information
The main form of the accounting information is seen to be maintained as per the
standards which are shown in form of the US GAAP. It needs to be also discerned that the
company has been able to maintain the specific information which are seen to be based on the
several types of the information as per the accounting of the various figures. These are depicted
in terms of the cost for the disease prevention outcomes and diagnosis costs. As per the annual
report published by the company in 2017 it can be also discerned that the company had been
relying its operations as per the various types of the consideration which are seen to be related to
the factors as per the smoking cessation program outcomes. These costs are depicted to be
considered as per the number of smoking cessation program participants, patients who have
completed the program and the total percentage of the individuals who have quit smoking
(Dunham-Taylor, 2014).
Billing and Coding
The billing and coding aspect of the company is depicted to be performed in terms of the
maintaining the information in the ERP system. This information is seen to be based on the
storing the linking of the information in the among different departments in the ERP software.
These linking of the software are seen to be based on the linking of the financial department with
the material management and sales and distribution. The generation of the purchase order is
further seen to be depicted as per MIGO and MIRO functions. In addition to this, the billing of
the healthcare system is depicted to include the fees of the patients, cost of the equipment’s,
diagnosis charge and fees of various types of the treatment of the disease (Thorpe, Allen & Joski,
2016).

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Pricing
The main aspect of the pricing factor is depicted in terms of the relating the various
nature of the information with the industry standards. In addition to this, the significant nature of
the information has been further depicted with the pricing of the services which are relevant to
the expenses for the treatment. It needs to be also discerned that the all the various types pricing
decisions of the company are also considered with the cost of the insurance (Vagnoni, 2017). It
has been seen that in general the determining factor for the pricing decisions are seen to be
depicted with the various types of the factors which are based on the comparison of the pricing
decisions with the other countries. In general, administrative costs and the high per capital
income are related to driving down of the prices and rate of economic growth in the country,
these factors are duly considered by the company. It has been seen that in general there has been
several factors which have led to the increasing trend of the prices (Bertoni et al., 2016).
Revenue Determination with Third Parties
The third-party account determination is also based on maintaining the data in the various
types of the ERP integration. This information is seen to be stored and maintained as per the G/L
account determination. Some of the ether types of the inclusion of the information are also seen
to be depicted in terms of the extracting the information as per the sales revenue generated by the
health care centre. Some of the various types of the other factors for relating the appropriate
information with the third parties are based on associating the relevant data as per the financial
information taken from the vendors. The revenue information is further gathered in terms of the
details of the sales revenues which are taken in form of the information which are gathered in
form components of the healthcare industry (Araujo et al., 2018).

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Healthcare Accounting Terminology
The accounting terminology is determined in terms of the accommodation of the
recording of the transactions which are related to the specific amounts and the full or partial
payment for the promise to provide accommodations in terms of the remainder. The information
of the account is seen to include the evidence as per the accountability. This information is seen
with the obligation of the agent and employees and the person are seen to include the information
which are satisfactory with the financial character and depiction of the financial information.
Some of the various types of the other information are further seen with the accounting manual,
accounting period, accounting policy and accounting principles. The method of the accounting
information is further based on the accrued depreciation method, accrued expenses and accrued
liability (Buckmaster & Mouritsen, 2017).
Comparative Financial Benchmark
The financial benchmarking of the business of Palmetto Health can be done with the
close rival of the company which is Greenville Health System. Both the companies are engaged
in same industry and therefore can be compared easily. Benchmarking is a tool of strategic
management which allows the management of a company to effectively compare the
performance of one’s company in comparison to another closely related company (Breen, 2013).
As per the financial information which is retrieved from the annual reports of Palmetto Health, it
is clear that the major source of income for the companies is through the donations which the
business receives from clients and there are also the revenues which the business receives from
the customers or patients of the company. On the other hand, the annual reports of the Greenville
Health system show similar outcomes but the financial performance of Greenville Health System

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is better. Thus, the management of Palmetto Health needs to benchmark Greenville Health
System so that the financial performance of the company can improve.

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Operating Benchmarking
This refers to the benchmarking of the operational activities of the business of Greenville
which the business of Palmetto Health can incorporate. This is done in order to improve the
operational processes and structure of the business (Bichou, 2013). As per the analysis of the
operational activities of both the companies which are taken into consideration, the services
which are provided by both the companies are more or less similar. The management of Palmetto
Health needs to take the positives which can be taken from the operational structure of
Greenville Health System. The incorporation of appropriate policies of Greenville Health system
which are related to operational structure can bring about significant improvements in the
operational structure and management of the business.
Costing Finding
The cost finding of the business is a process which is used for the purpose estimating the
costs which are associated with the business. The overall costs of the business are associated
with the operational activities of the business. The major cost of the company is related to the
wages which the business pays to the medical personnel of the business. The other major
expenses of the business are related to the medical activities which the business undertake. The
major costs which the business has shown in the annual reports of the company.
Breakeven Analysis
The breakeven analysis of any company shows the minimum amount of revenue which
the business needs to earn in order to continue the operations of the business. The breakeven
analysis reveals to the business the no profit or loss situation in the business (Farber, 2014). The

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analysis of breakeven analysis of the business considered the fixed costs of the business. The
breakeven analysis which is computed is on the basis of assumed financial data which is based
on the services and their respective values which the business receives. The analysis is also
accompanied by a graph which represents the breakeven analysis for the company.
Working Capital Management
As per the financial information which is obtained from the annual reports of the
company, the management of the Palmetto Health is financed mainly with the donations which
the business receives from different clients and governmental agencies. The management of the
company also makes use of the money which the business receives from the patients as fees for
various services which are provided by the business. In addition to this, the annual report of the
company also shows that the business also utilizes debts capital as a source of capital for the
purpose of financing the activities of the business (Enqvist, Graham & Nikkinen, 2014). The
capital structure of the company is made up of retained earnings and the surplus which the
business is able to generate from the operations of the business and also from debt and short-term
borrowings which are taken by the business for the smooth operations of the business.

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Budget
(1) SALES FORECAST
Year 0 1
Projected Sales 500,000.00£
(b) Cost of goods 300,000.00£
(2) CASHFLOW FORECAST
Preop
Year 0 1
CASH INFLOWS
Cash from Sales 500,000.00£
Directors loans 40,000.00£ 40,000.00£
Capital Employed 100,000.00£ 100,000.00£
Other cash inflows
TOTAL CASH INFLOW 140,000.00£ 640,000.00£
CASH OUTFLOWS
Payments for materials 300,000.00£
operating expenses ( ) -£
Premises (rent, rates) -£ 50,000.00£
Wages and salaries -£ 100,000.00£
General expenses -£ 2,500.00£
Interest and bank charges payable -£ 3,250.00£
Corporation Tax 11,250.00-£
capital expenditure
Plant and other capital expenditure -£ 175,000.00£
financing repayments
Loan repayments
TOTAL CASH OUTFLOWS -£ 619,500.00£
Cash flow summary
NET CASHFLOW FOR PERIOD 140,000.00£ 20,500.00£
OPENING CASH BALANCE -£ 140,000.00£
CLOSING CASH BALANCE 140,000.00£ 160,500.00£