Gentiva Services



Assignment 2: Source of Revenue: Viability Use the balance sheet and statement of income you downloaded for Ascension Health during Week 3. In a Microsoft Excel spreadsheet, prepare a vertical analysis of the company for the years 2013 and 2014 and a horizontal analysis from 2013 (base year) to 2014 (subsequent year). Discuss your findings. Here are a few, but not all, the questions you should consider. •Is Ascension Health growing? •What line items reflected the largest-percentage increases and/or decreases? •What is the financial impact these changes have on the company’s financial viability currently and in the future? By Tuesday, December 8, 2015, submit your 2–3-page report to the W4: Assignment 2 Dropbox. Assignment 2: Business Plan for a Healthcare Organization In Week 5, you need to work on two main tasks: The first task is: Source of Revenue: An Increase in the Medicare Patient Population The president of Gentiva Health Services is considering increasing her number of Medicare patients served next year. However, to do so she must begin to use RNs for client visits, which Medicare reimburses at $45 per visit. An RN costs $35 per hour versus the current cost of $15 for an LPN or nurse’s aide. The president believes she can increase her patient visits by 15% by accepting Medicare patients. She is also aware that if she increases her Medicare patients, the company’s administrative costs will increase by approximately $10,000 per year because of the claims file complexity. Using the Gentiva Health Services Statement of Income http://www.dailyfinance.com/quote/nasdaq/gentiva-health-services-inc/gtiv/sec-filings, use the following volumes for your calculations: Volume for the year: •Flexible budget: 6,000 visits •Static budget: 5,945 visits •Actual budget: 5,889 visits Prepare a two-page report that addresses the following: 1.How many more visits will the company generate if it accepts Medicare patients? 2.What would be the estimated profit or loss associated with the Medicare service line? 3.Would you recommend that Gentiva Health Services increase its number of Medicare patients served? Why or why not? The second task is: Business Plan Review the quarterly report and develop a business plan for the organization for its upcoming financial year. Be sure to include the following in your organized business plan: •Organization segment •Marketing segment •Financial segment •Projected cash flow statement •Projected income statement •Projected balance sheet Feel free to take liberties with information needed that is not available in the report. You may find the quarterly report athttp://finance.yahoo.com/news/gentiva-health-services-reports-third-221500117.html Include all required tasks for this assignment in a Word document