Omega Health Foundation Paper
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- Date Submitted: 08/22/2010 04:44 PM
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Omega Health Foundation Financial Position
The way to determine if a health care organization is operating in a successful and proficient manner is through the use of financial statements. The review of the balance sheet, statement of revenues and expenses, statement of cash flows, and the statement of changes in fund balances is a vital task to analyze the financial performance of any health care organization. Many people rely on an use the organization’s financial statement to make critical decisions including management, board of directors, creditors, investors, government bodies, grant-making agencies, and the public (Financial Performance Indicators, 2004).
Omega Health Foundation is a complex business with two hospitals plus a number of related medical-service providers (Cleverly & Cameron, 2007). All of the related entities are nonprofit with the exception of Omega Medical Management, Inc (OMMI). The financial statement of Omega Health Foundation will be reviewed and recommendations will be made to strengthen its financial situation. To fully examine the current financial situation, principles of finance and how they relate to Omega Health Foundation’s financial position must be assessed. In addition, net income and cash flows will be compared, as well as market value and book value of the assets. Weaknesses and strengths of the organization will be examined and recommendations will be stated.
Principles of Finance
The rapid growth of health care systems in recent years has increased substantially the numbers of decision makers who need to be familiar with financial information. Effective decision making depends on an accurate interpretation of financial information. Uses of financial information that are important in decision-making include evaluating the financial condition of an entity, evaluating stewardship within an entity, assessing the efficiency of operations, assessing the effectiveness of operations and determining the compliance...
The way to determine if a health care organization is operating in a successful and proficient manner is through the use of financial statements. The review of the balance sheet, statement of revenues and expenses, statement of cash flows, and the statement of changes in fund balances is a vital task to analyze the financial performance of any health care organization. Many people rely on an use the organization’s financial statement to make critical decisions including management, board of directors, creditors, investors, government bodies, grant-making agencies, and the public (Financial Performance Indicators, 2004).
Omega Health Foundation is a complex business with two hospitals plus a number of related medical-service providers (Cleverly & Cameron, 2007). All of the related entities are nonprofit with the exception of Omega Medical Management, Inc (OMMI). The financial statement of Omega Health Foundation will be reviewed and recommendations will be made to strengthen its financial situation. To fully examine the current financial situation, principles of finance and how they relate to Omega Health Foundation’s financial position must be assessed. In addition, net income and cash flows will be compared, as well as market value and book value of the assets. Weaknesses and strengths of the organization will be examined and recommendations will be stated.
Principles of Finance
The rapid growth of health care systems in recent years has increased substantially the numbers of decision makers who need to be familiar with financial information. Effective decision making depends on an accurate interpretation of financial information. Uses of financial information that are important in decision-making include evaluating the financial condition of an entity, evaluating stewardship within an entity, assessing the efficiency of operations, assessing the effectiveness of operations and determining the compliance...