Walden FM006 Conduct an Operational Analysis

Walden FM006 Conduct an Operational Analysis

Walden FM006 Conduct an Operational Analysis

Operational Analysis: Banner Health – Walden FM006 Conduct an Operational Analysis Sample Approach

FM006: Conduct an Operational Analysis Vince Deguzman

Banner Health had considered the lives of five million Americans when they decided to focus on a groundbreaking research mission of Alzheimer’s research. While also providing top- notch Alzheimer’s care to reach the goal of ending Alzheimer’s before another generation is lost. The number of families who have lost loved ones to Alzheimer’s is upwards of 121,499 deaths in 2019 alone. Asset viability is necessary across the care settings to protect investments, implement proper training equipment, and protect capital resources. The administration uses these resources to ensure that organizational best practices are being followed, developing and evaluating the effectiveness of projects and care, instituting and developing care programs, making changes, and sustaining feasibility of resources over time (Meeks, Pace & Zimmerman, 2018).

In medical settings, asset management is the systematic, cost-effective process of planning, acquiring, and maintaining physical assets of the healthcare organization. Further, asset management enables organizations to track and maintain inventory facilities and optimize care processes and physical assets (Fortune Business Insights, 2020). Asset Management to Banner Health Alzheimer’s research is not only represented by the incredible staff. Purchases are in the formulations, the labs, the time; asset management is essential and enables a company to see all the assets currently being used within the corporation at any given time. Managing assets also comes with identifying and managing risks that could arise and helping guarantee the accuracy of amortization rates—keeping a working inventory on all purchases while computing life cycle costs in asset management. Operational efficiency is improving compliance and improving upon acquisition and usage while tracking equipment used, staff efficiency, and facility efficiency in real-time.

Effective revenue cycle management is crucial to organizational success. Trade finance enables healthcare organizations to use working capital to increase their buying capacity in the short term. Trade finance enables hospitals to increase efficiency and grow their business with more extended repayment periods to quickly respond to market changes and consumer demand (Phillips, 2022). Trade credit is a safety net that makes trade credit can aid in protecting companies from non-payment of corporate accounts receivable, freeing up cash flow due to the corporation paying in the future for services or supplies received before the payments process. Increased cash flow also increases the more significant generation of working capital. Banner Health has implemented life-saving research since its conception in 2006. It is a part of the Arizona Alzheimer’s Consortium. Banner seeks effective Alzheimer’s disease prevention therapies before another generation becomes victim to the disease. This research is an excellent asset to the Banner health hospital system because it can change the lives of those with Alzheimer’s all over the United States. (HERMES, 2021).

Lease appraisal and business valuation determine fair market value for transactions, properties, rental payments, and healthcare transactions. Value assessments and leasing arrangements are necessary to decide on future and ongoing capital projects (Hall Render, 2014). Leasing serves as a contractual agreement between the corporation that owns the asset and grants the right to use the investment in return for a periodic payment and the other party who is the user of such investments. Lease analysis evaluates the net advantage of leasing compared to the present dollar value of the project. (ACHE, 2021). Business’s valuation benefits by gaining better knowledge of company assets, understanding company resale value, and obtaining an accurate value of the company. (Kulkarni, 2016).

Operations management is the process of designing, delivering, and improving healthcare systems, services, and delivery. Conducting an operational analysis enables organizations to make and evaluate their decisions in a structured method (McLaughlin & Hays, 2008).

Functional analysis is a method of examining the current performance of an investment and measuring performance against an established set of cost, schedule, and performance goals. For Banner Health Alzheimer’s research, some examples of this would be, are we meeting cost goals by lab resources and staff resources and are we staying on schedule for reporting findings.

Operational analysis is less structured than performance reporting methods applied to developmental projects. It is less structured and should challenge management teams to consider how organizations could better meet investment objectives, how organizations could save costs, and whether the organization should perform a particular function. (Department of Commerce, 2017).

Financial ratios assess the financial condition of a hospital or healthcare delivery system.

This category is crucial to determining profitability, liquidity, solvency, surplus, and assets. Probability is the healthcare category that evaluates an organization’s ability to generate plenty. The class includes operating, non-operating, and total profit margins (Center for Health Information and Analysis, 2022). Profitability ratios are used to evaluate and determine the financial viability of corporations and are imperative when comparing your corporation’s financial fitness to others and following business trending. Efficiency ratios measure financial transactions for five years which helps corporations gain insight into collections, cash flow, and operational results. Various tools are available to determine the calculation and interpretation of ratios. (Canadas Business Development Bank, 2021).

Capital investing is a corporation’s contribution of funds toward acquiring long-term assets for future growth. Long-term support can include various investments such as purchasing new equipment, replacing old machinery, further facility expansion. Corporations use a variety of processes to determine their capital needs, assess their ability to invest in capital investment, and decide which capital expenditures are the best fitting for their available resources. (Franklyn et al., 2021). Healthcare administrators look at finances for the month to month, quarterly, and yearly fiscal trends.

There are some strategies to create long-term financial viability. Healthcare organizations want to increase cash flow and can do so by using data and analytics. To achieve long-term economic viability, looking at the healthcare cost issues and identifying opportunities for improvement is imperative to see what areas and where organizations can make lasting progress; that’s where the data and analytics come into play. To assess appropriate risk for the Banner Health Alzheimer’s research project, the organization examined various possible risk sources and categories to evaluate these risks and their ultimate impact on the project. A risk reduction and action plan were constructed and put in place while utilizing metrics and risk thresholds. The risk analysis also includes analyzing how the project outcomes and objectives will change due to the impact of the risk event once project risks identify and analyzed risks, the qualitative and quantitative effects of the risk on the project to put proper steps in place to alleviate them.

The longitudinal. Alzheimer’s research project at Banner Health will take several years to conduct; however, at some point, a post-audit will be shown to analyze the outcome of capital budgeting and overall investment. The audit review will audit the quality of work before finalizing the final audit review. The post-audit examination can determine improvement for future projects. This monitoring tool of the various phases of research will also aid in improving budget and resource allocation while identifying priorities and where corrective measures occur. In conclusion, after working in long-term care for several years and seeing many families suffer the loss of loved ones to this disease, the fight for more knowledge and research is valid. This research at Banner Health could change many lives in the future and save many families’ grief or soften the blow of someone being diagnosed with Alzheimer’s.

Resources ACHE. (2021). Chapter 18: Lease Financing and Business Valuation.

https://www.ache.org/-/media/ache/learning-center/publications/book-detail-documents/Gapenski2299_Chp1819.pdf

Banner Health. (2021). Banner Alzheimers Institute . Banner Alzheimer’s Institute | Dementia & Alzheimer’s Treatment. Retrieved December 28, 2021, from https://www.banneralz.org/

Banner Health. (2021). Banner Health at a glance. Banner Health. Retrieved December 28, 2021, from https://www.bannerhealth.com/about/glance

CanadasBuisinessDevelopementBank. (2021, August 27). Financial ratios: 4 Ways to Assess Your Business. 4 ways to assess your business performance using financial ratios. Retrieved March 7, 2022, from https://www.bdc.ca/en/articles-tools/money-finance/manage-finances/financial-ratios-4-ways-assess-business

Center for Health Information and Analysis. (2022). Interpretation of Financial Ratios. https://www.chiamass.gov/interpretation-of-financial-ratios/.

CorporateFinanceInstitute. (2022, February 10). Asset management. Asset Management. Retrieved March 6, 2022, from https://corporatefinanceinstitute.com/resources/knowledge/finance/asset-

management/

Department of Commerce. (2017, June 20). Operational Analysis & Performance Reporting.

Operational Analysis & Performance Reporting Tools and Resources. Retrieved March 7, 2022, from https://ocio.commerce.gov/page/operational-analysis-performance-reporting

Franklyn , M., Graybeal, P., & Cooper, D. (2021). Describe Capital Investment Decisions and How They Are Applied. In Principles of Accounting : Volume 2 Managerial Accounting (Vol. 2, pp. 11.1– 11.2). essay, OpenStax.

Fortune Business Insights. (2022). Hospital Asset Management Systems Market. https://www.fortunebusinessinsights.com/industry-reports/hospital-asset-management-systems-

market-100625.

Hall Render. (2014). The Use of Fair Market Value Assessments for Health Care Leasing Arrangements. https://www.hallrender.com/2014/11/13/the-use-of-fair-market-value-assessments-for-health-care-leasing-arrangements/.

Health Catalyst Editors. (2021, December 21). Healthcare Financial Transformation: 5 top strategies. Healthcare Financial Transformation: Five Leading Strategies. Retrieved March 20, 2022, from https://www.healthcatalyst.com/insights/healthcare-financial-transformation-5-top-strategies/

HERMES, E. U. L. E. R. (2021, February 9). How to increase working capital: Euler Hermes USA. How to Increase Working Capital | Euler Hermes USA. Retrieved March 6, 2022, from https://www.eulerhermes.com/en_US/insights/increase-working-capital.html

Kulkarni, C. (2016, August 10). 5 benefits of getting a business valuation. Inc.com. Retrieved March 7, 2022, from https://www.inc.com/chirag-kulkarni/5-benefits-of-getting-a-business-valuation.html

Lavanya, N. & Malarvizhi, T. (2008). Risk analysis and management: a vital key to effective project management. Paper presented at PMI® Global Congress 2008—Asia Pacific, Sydney, New South Wales, Australia. Newtown Square, PA: Project Management Institute.

McLaughlin, D., Hays, J. (2008). Healthcare Operations Management. https://www.lsms.ac/public/uploads/Q4cRuAAloxKJ7MC7xvzv1ip4CpSSFRbbKEYm2OZoIOcOSx6ska1575235900l4kTlqftBsAVXAAQtbdzTiIsj1wdmURyBFriQd5DxMGg8jYrFi.pdf.

Meeks, S., Pace, D., Zimmerman, S. (2018). Alzheimer’s Association Dementia Care Recommendations. https://www.alz.org/media/documents/alzheimers-dementia-care-practice-recommendations.pdf.

Phillips. (2022). Trade Finance. https://www.philips.com.tr/healthcare/resources/landing/philips-

capital/trade-finance.

Staff Twproject, T. (2020, February 25). Project audit: What it is and how to perform IT – twproject: Project Management Software,Resource Management, time tracking, planning, Gantt, Kanban. Project Audit: what it is and how to perform it. Retrieved March 21, 2022, from https://twproject.com/blog/project-audit-perform/#:~:text=The%20monitoring%20of%20the

%20various,to%20a%20positive%20project%20outcome

Overview

This Assessment requires submission of one (1) document. Save the file as FM006_firstinitial_lastname (for example, FM006_J_Smith).

When you are ready to upload your completed Assessment, use the Assessment tab on the top navigation menu.

Access the following to complete this Assessment:

• Use the APA course paper template available here.
• Download the Writing Checklistto review prior to submitting your Assessment.

Rubric

For the Assessment, assume that you are a financial expert at Arizona Health Services (AHS), a large not-for profit hospital system and you have been charged with conducting an operational analysis on a single resource or asset. You will report the results of your analysis in an email to the AHS leadership in which you explain the efficiency and viability of the resource or asset you selected. Walden FM006 Conduct an Operational Analysis

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To complete the Assessment, conduct an operational analysis of a single resource or asset in which you determine whether the resource or asset is efficient and viable. As you prepare the email, consider the following:

• How managing material assets contributes to making effective management decisions and ensuring operational efficiency.
• How leveraging the cost of trade credit can improve cash flow and enhance working capital.
• How lease financing and business valuation that can help healthcare managers use financial resources effectively.
• How the assessment of potential expenditures on capital investment informs capital investment decisions.
• How long-term financing options allow healthcare organizations to achieve financial and operational viability in the long-term.
• How project risk analyses are used to conduct the appropriate risk evaluation for the project.
• How post-audits contribute to the review of project performance.

Your email should include the following:

• Describe the resource or asset you selected.
• Explain how the resource or asset is used in the healthcare facility.
• Describe the operational analysis process you used to determine the efficiency and viability of the asset or resource selected
• Explain whether the resource or asset is the most viable and efficient option.
• Justify your determination.

FM006: Conduct an Operational Analysis: Conduct operational analyses to ensure operational efficiency and financial viability.

Assessment Rubric

Rubric Criteria	Needs Improvement	Meets Expectations	Exceeds Expectations
Leadership Orientation Presentation on Healthcare Financial Management
Learning Objective 1.1: Describe the impact of financial concepts on decision making in a healthcare organization.	Presentation does not describe, unclearly or inaccurately describes the impact of the following financial concepts on decision making in a healthcare organization: ·       Managing material assets. ·       Leveraging the cost of trade credit. ·       Lease financing and business valuation ·       Assessment of potential expenditures on capital investment. ·       Long-term financing options. ·       Project risk analyses. ·       Post-audits and project performance. Response does not include references to academic/professional resources, or the resources are not relevant.	Presentation clearly and accurately describes the impact of the following financial concepts on decision making in a healthcare organization: ·       Managing material assets. ·       Leveraging the cost of trade credit. ·       Lease financing and business valuation ·       Assessment of potential expenditures on capital investment. ·       Long-term financing options. ·       Project risk analyses. ·       Post-audits and project performance. Response includes references to relevant	Presentation demonstrates the same level of achievement as “Meets,” plus the following:   Presentation provides at least one specific example of the impact of at least three financial concepts discussed on an actual decision made in a healthcare organization.

  

Rubric Criteria	Needs Improvement	Meets Expectations	Exceeds Expectations
		academic/professional resources.
Learning Objective 1.2: Explain the importance of financial analysis in the role of healthcare leader.	Presentation does not explain or unclearly or inaccurately explains the importance of financial analysis in the role of healthcare leader.   Response does not include references to academic/professional resources, or the resources are not relevant.	Presentation clearly and accurately explains the importance of financial analysis in the role of healthcare leader.   Response includes references to relevant academic/professional resources.	Presentation demonstrates the same level of achievement as “Meets,” plus the following:   Presentation provides specific examples of how healthcare leaders use financial analysis.
Learning Objective 1.3: Describe major factors healthcare leaders must consider when making capital investment or capital structure decisions.	Presentation does not describe, describes less than two or unclearly or inaccurately describes two major factors that leaders must consider when making capital investment or capital structure decisions.   Response does not include references to academic/professional resources, or the resources are not relevant.	Presentation clearly and accurately describes at least two major factors that leaders must consider when making capital investment or capital structure decisions.     Response includes references to relevant academic/professional resources.	Presentation demonstrates the same level of achievement as “Meets,” plus the following:   Presentation clearly and accurately describes at three or more major factors that leaders must consider when making capital investment or capital structure decisions.
Learning Objective 1.4:	Presentation does not explain, or unclearly or inaccurately explains the process of project risk analyses. Walden FM006 Conduct an Operational Analysis	Presentation clearly and accurately explains the process of project risk analyses.	Presentation demonstrates the same level of achievement as “Meets,” plus the following:

 

Rubric Criteria	Needs Improvement	Meets Expectations	Exceeds Expectations
Explain the process of project risk analyses.	Response does not include references to academic/professional resources, or the resources are not relevant.	Response includes references to relevant academic/professional resources.	Presentation includes a specific example to illustrate the process of project risk analyses.
Learning Objective 1.5: Explain how to incorporate risk assessments into the capital investment decision process.	Presentation does not explain, unclearly or inaccurately explains how to incorporate risk assessments into the capital investment decision process.   Response does not include references to academic/professional resources, or the resources are not relevant.	Presentation clearly and accurately explains how to incorporate risk assessments into the capital investment decision process.   Response includes references to relevant academic/professional resources.	Presentation demonstrates the same level of achievement as “Meets,” plus the following:   Presentation includes a specific example to illustrate how to incorporate risk assessments into the capital investment decision process.
Learning Objective 1.6: Explain the importance of post- audits in the implementation of projects.	Presentation does not explain, unclearly or inaccurately explains the importance of post-audits in the implementation of projects.   Response does not include references to academic/professional resources, or the resources are not relevant.	Presentation clearly and accurately explains the importance of post-audits in the implementation of projects.   Response includes references to relevant academic/professional resources.	Presentation demonstrates the same level of achievement as “Meets,” plus the following:   Presentation explains the process of how post- audits are conducted.
Learning Objective 1.7:	Presentation does not recommend, recommends fewer than two, or	Presentation clearly or accurately recommends at	Presentation demonstrates the same

 

 

Rubric Criteria	Needs Improvement	Meets Expectations	Exceeds Expectations
Recommend resources healthcare leaders should use to gain more information on financial management of projects in a healthcare organization.	unclearly or inaccurately recommends two resources healthcare leaders should use to gain more information on the financial management of projects in a healthcare organization. Walden FM006 Conduct an Operational Analysis   Response does not include references to academic/professional resources, or the resources are not relevant.	least two resources healthcare leaders should use to gain more information on the financial management of projects in a healthcare organization.   Response includes references to relevant academic/professional resources.	level of achievement as “Meets,” plus the following:   Presentation clearly or accurately recommends more than two resources healthcare leaders should use to gain more information on the financial management of projects in a healthcare organization.