Financial Management Report: Peterson Center Healthcare Analysis

This report analyzes the financial management practices of the Peterson Center on Healthcare, focusing on the roles and responsibilities of the financial manager, Tom Clinton. It covers key aspects such as evaluating financial effectiveness, making long-term investment decisions, and fiscal planning. The report details the organization's reliance on donations, beneficiary services, and venture capital investments. It examines operational and capital budgeting, strategic planning, and the impact of healthcare finance on service quality and cost reduction. Furthermore, the report addresses measures to improve organizational performance and avoid financial errors, as well as the importance of strategic planning alignment. The report also includes a discussion on the significance of healthcare finance for administrators and its impact on the healthcare industry.

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Running Head: Healthcare
HEALTH FINANCIAL MANAGEMENT
Name
Institutional Affiliation

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Healthcare
HEALTH FINANCIAL MANAGEMENT
Introduction
Mr. Tom Clinton is the financial manager in the Peterson Center on Healthcare located in
the United States of America. Peterson Center on Healthcare is a non-profit organization whose
main aim is to offer high quality together with affordable healthcare. The organization has
majored in improving quality together with lowering the cost and this is made possible by
bringing on board the best doctors, insurers, and quality health systems. The healthcare center
was established in 2014 at a cost of over two hundred million dollars. Moreover, the organization
is known to work with several partners including healthcare organizations, universities together
with various foundations. The organization's vision is to transform US healthcare into a high-
performance system using innovative solutions. The mission of the healthcare organization is to
provide high quality and affordable healthcare to American citizens. The major roles of Tom
Clinton are to evaluate the financial effectiveness and even the operations of the healthcare
organization. Moreover, this is crucial in ensuring that the organization plans effectively for the
future.
Financial Information
Considering the financial information from the company, the hospital depends majorly on
donations and they majorly come from the individual donors and they are known to make up
over seventy five percent of the funds in the organization. The organization also earns from the
beneficiary services that it offers to specific individuals. Moreover, the organization has also
invested in venture capital.
Question one

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Mr. Tom Clinton is the financial Manager in Peterson Center on Healthcare and some of
his duties include evaluating the financial effectiveness and even the operations of the healthcare
organization. Furthermore, he is involved in making long term investment decisions and this
looks into the implementation strategies together with finding out how the proposed investment
will affect the financial future of the healthcare organization (Boyer, 2017). Moreover, he is also
involved in financing and this may involve raising funds for expenditure. He has been the
financial manager for the organization for the past two years.
Question two
Some of the duties and responsibilities involving fiscal planning include financial review
and this involves the regular reviewing of the budget. Moreover, it involves identifying the fund
balances together with ensuring the correctness of the financial activities. He is involved in
monitoring cash flow within the organization to ensure finances are not lost in the course of
operations. Furthermore, he has an aim in trying to find the cost reduction opportunities within
the organization to ensure there is minimal wastage of resources by the organization. Moreover,
he is offered the responsibility of ensuring that the business meets its compliance obligations
together with the accounting and tax issues. The financial manager within the organization is
charged with the responsibility of keeping track of market trends to ensure that the organization
stays up to date in terms of technology and even information (Gapenski, 2017).
Question three
Considering strategic planning, the organization has come up with various objectives and
even goals that are supposed to drive the organization to the future. Moreover, the organization
has constructed a plan that is meant to foresee the whole process and ensure the goals are met at

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the end of the whole exercise. Furthermore, some of the issues to consider include technological
advancements, government policy changes and even the economic trends and these are
considered to be essential especially when it comes to making significant impacts to the
healthcare organization (Finkler, 2018). The major factors that have been considered by the
organization when it comes to strategic planning is the organization of the institution. Moreover,
it is essential to understand how the institution is organized and how essential it is to ensure the
success of the organization.
Question Four
The operational budgeting is made possible by considering several other small budgets.
These include the production budget which considers the number of units that have to be
produced to meet the sales that are expected. Moreover, there is the sales budget which is the
expected product sales, cash budget which is the cash receipts, general and administrative
budget, direct labor budget, direct materials budget and the manufacturing overhead budget. The
various budgets make up the operational budget which majorly explains the various expenses
that are needed for successful operations.
When we consider capital budgeting, the organization has decided on several techniques
that include an internal rate of return which involves selecting a project that depicts the highest
internal rate of return. Moreover, this is essential in ensuring the organization majors on highly
profitable projects and not any other project.
Question Five
The complex healthcare delivery system has led to increased paperwork and there has
been the need for improved administrative resources together with raising the payer cost.

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Question six
Healthcare finance is essential in ensuring there is quality in the healthcare that is offered
and this is made possible when there is adequate finance to establish quality healthcare facilities
to facilitate quality healthcare. Moreover, improved healthcare services facilitate a reduction in
the cost involved in healthcare services and this is due to the presence of healthcare finance. The
value of services offered by the healthcare organization is set to be high when healthcare finance
is kept in place. Moreover, the desire to work by most workers within the healthcare system will
be high and this will lead to improved performance due to the healthcare finance being utilized in
the best way possible. Moreover, the those offering insurance to the healthcare organization will
be in good terms with the healthcare organization when finances are utilized in the best way
possible. Moreover, waste is managed in the best way possible when finances are allocated
efficiently to deal with waste management within the healthcare system.
Question seven
Some of the measures kept in place include modernizing the marketing efforts to ensure
they maximize the essential sectors within the healthcare organization. Moreover, it has
embraced efficient time strategies and this involves optimizing productivity efficiently to lower
the cost involved.
Question 8: What are the various methods that you use to avoid errors when recording or
even examining financial documents?
As a financial manager, I pay attention to detail whenever am doing my work. Moreover,
I have taken it upon myself to identify and even correct errors before a problem occur.

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Furthermore, I am always double-checking my work every time am at work for better and quality
reports.
Question 9: How do you reward and even motivate your team?
There are several motivational techniques that I have picked from the time I began my
job and these have been the driving factors especially to my team. Moreover, most of the
workers have developed good communication skills and even creativity during the whole process
and this is more than a reward to them.
Question ten: According to you, can a cash flow statement depict the wellness of a
company?
Cash flow statements are known to show the various things the company is doing with its
money and wherever the money is coming from but it does not involve the liabilities and the
assets for the organization.
Comment on the organization's strategic planning process and its relationship to financial
management. Is there an appropriate alignment? Support your perspective.
Considering the strategic planning process of the organization, it is evident that it has
taken into account the various foreseeable changes that might affect the organization in one way
or another (Lawrence, 2018). Moreover, the organization has taken a keen interest I productivity
and this has offered them a chance to identify areas to improve on even as they carry out their
day to day activities in ensuring the citizens get the best at the end of the day.
Explain what you see as the most important aspect of financial management for healthcare
administrators.

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The aspects of financial management include meeting the various financial goals for the
healthcare organization. Moreover, there is the aspect of managing the treatment cost and this
ensures that the treatment cost is applied in the right way and that no discrimination is evident
during the whole exercise (Zelman, 2017). Furthermore, there is the aspect of preventing
expensive medical conditions and this will ensure that the patients get medical attention at an
affordable price and that they get quality services during their visit to the healthcare
organization.
References
Boyer, D. F., & Hammersla III, W. E. (2017). U.S. Patent No. 6,208,973. Washington, DC: U.S.
Patent and Trademark Office.
Gapenski, L. C., & Pink, G. H. (2017). Understanding healthcare financial management.
Chicago: Health Administration Press.
Finkler, S. A., Smith, D. L., & Calabrese, T. D. (2018). Financial management for public,
health, and not-for-profit organizations. CQ Press.
Nowicki, M. (2016). The financial management of hospitals and healthcare organizations.
Health Administration Press.
Zelman, W. N., McCue, M. J., Millikan, A. R., & Glick, N. D. (2017). Financial management of
health care organizations: an introduction to fundamental tools, concepts, and applications.
John Wiley & Sons.

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Lawrence, S., Alam, M., & Lowe, T. (2018). The great experiment: financial management
reform in the NZ health sector. Accounting, Auditing & Accountability Journal.