Financial Analysis

Your group has been ‘hired’ as interns at Valley Medical Center. Instead of acting as mere go-fors for the duration of the time at VMC, the VP of Finance has decided that it would be a waste to not take advantage of the accounting knowledge that you have accumulated at Bellevue College. In addition, the project assigned would provide a taste of what real-life management accountants are called upon to do.

VMC is a local hospital that provides services to primarily the southern King County area of the State of Washington. If you want full details on what VMC is and what it does, you can find out more at (Links to an external site.). One of the largest services VMC provides is in Emergency Services, or the ER as most people like to call it.

Don't use plagiarized sources. Get Your Custom Essay on
Financial Analysis
Get a plagiarism free paper Just from $13/Page
Order Essay

Located in the same directory of this document is an excel spreadsheet containing a host of data on the emergency department as well as support departments at VMC. In addition, you will also find detail of revenues and expenses of other departments at VMC. There should also be a tab that will help you cross reference department numbers to department descriptions.

One item that you should notice is that the income statement of the emergency department shows gross patient revenues and then something called contractual adjustments. Gross patient revenues are essentially the number of times a service is performed multiplied times some price. The interesting thing about health care is despite the fact we charge a certain amount, we will not get that amount. All medical facilities enter into contracts with insurance carriers. For a particular type of service, an insurance company may only reimburse 80% of the price of the service provided. In other situations, some insurance companies may only reimburse a fixed amount for the service provided. As a result, the difference between what the medical facility charges and what is actually paid by insurance is considered to be a contractual allowance. The rest of the expenses are fairly self-explanatory. For the purposes of this project, you can ignore other operating revenues.

Another tab that might draw your attention is one called ED_Services_Provided_2011. You will find a summary of the services that were charged to patients. VMC charges patients based on a level. Each level has a set of criteria that would indicate how you would be charged. For the purposes of this project, you can assume that each level consumes a multiple of the resources of the lowest level. So, a Level 3 ED Charge will consume 3 times as many resources as Level 1 ED Charge, while a Level 4 ED Charge will consume 4 times as many resources as a Level 1 ED Charge.

1.Determine whether the Emergency Department is profitable after allocating costs of support departments.

Is there one level charge that is more or less profitable than another? Who should determine what charges should be applied to a patient? What are the advantages/disadvantages on determining who should determine what emergency department charge level should be applied to a patient? Does it matter? Are there any ethical issues involved in this?

Requirements: 2 pages

Master Homework
Order Now And Get A 20% Discount!
Pages (550 words)
Approximate price: -

Advantages of using our writing services

Custom Writing From Scratch

All our custom papers are written by qualified writers according to your instructions, thus evading any case of plagiarism. Our team consists of native writers from the USA, Canada, and the Uk, making it convenient for us to find the best to handle your order.

Unlimited Free Revisions

If you feel your paper didn't meet all your requirements, we won't stop till it's perfect. You're entitled to request a free revision within 7 days after we submit your paper.

Quality Writing In Any Format

If you have issues with citing sources and referencing, you need not worry. Our writers are highly knowledgeable in referencing, including APA/MLA/Havard/Chicago/Turabian and all other formatting styles.

Fast Delivery And Adherence To The Deadline

All our custom papers are delivered on time, even the most urgent. If we need more time to perfect your paper, we may contact you via email or phone regarding the deadline extension.

Originality & Security

At Master Homework, your security and privacy is our greatest concern. For this reason, we never share your personal information with third parties. We use several writing tools to ensure your paper is original and free from plagiarism.

24/7 Customer Support

Our agents are online 24 hours a day, 7 days a week, and are always ready to serve you. Feel free to contact us through email or talk to our live agents whenever you need assistance with your order.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work nonstop to see the best client experience.


Flexible Pricing

We offer pocket-friendly prices that coincide with the preferred client's deadline.


Admission help & Client-Writer Contact

Our support team is always ready to ensure vital interaction between you and the writer whenever you need to elaborate on something.


Paper Submission

We deliver our papers early within the stipulated deadlines. We are glad to help you if there should be an occurrence of any alterations required.


Customer Feedback

Your review, positive or negative, is of great concern to us and we take it very seriously. We are, consequently adjusting our policies to ensure the best customer/writer experience.