Scenario:

You are a junior analyst at a 500-bed nonprofit hospital in a   competitive metropolitan market. You have been asked by the CFO to   work on the financial operating plan for the upcoming fiscal year. The   finance department has stated that the hospital’s anticipated revenue   is $60,000,000, with a 6% operating margin. The hospital   administration is only allowing you to recommend up to a maximum of   two projects to the CFO.

You have been asked to consider making a proposal for the following   service line requests:

1. A new EMR system, 10-year payback with $1,000,000 outlay. The     system will update current the platform to meet new regulations and,     according to the vendor, provide better clinical   outcomes. 
2. Overhaul of the cardiovascular lab, rooms 2     and 3. Costs of $900,000 a room are estimated. The updates will     generate a 3% return above what the hospital has historically seen     due to advances in operational efficiencies.
3. New parking     garage with an estimated cost of $3,600,000 (can be amortized over 5     years). The garage will add an additional 125 covered parking spots     on the campus.
4. Purchase a 50-physician practice at a cost     of $2,800,000.  The group is also considering a similar offer     at a competing hospital. The practice presently has a strong     utilization in your facility.

Proposal:

In a 750-1,000 word proposal, answer the following questions:

1. Name and describe three components of the health care finance     system that are present in the assignment.
2. Describe how the     components you selected interact with one another and how this     interaction informs your decision-making process.
3. Explain     the steps and information you would need to make your   recommendations.
4. Describe which two projects you would     recommend and provide rationale.
5. Explain why you would not     recommend the other two projects and provide rationale.
6. What if this hospital was a for-profit system, would your answer     change? Why or why not?

Cite a minimum of three references to support your rationale.

Prepare this assignment according to the guidelines found in the APA   Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to   beginning the assignment to become familiar with the expectations for   successful completion.

You are required to submit this assignment to LopesWrite. Please refer   to the directions in the Student Success Center.

This assignment assesses the following programmatic competencies:

MPA: 4.3: Analyze how components of the health care finance system     interact with each other.

HCA: 3.6:  Develop and apply skills necessary to manage     finances, evaluate financial performance, and develop financial     plans at the departmental/organization level.

MBA: 5.1: Develop financial plans to support the viability of     health care organizations.