1. 2008/05/141 Health Care Management Taking care of your organization’s financial health Professor ： Chen-Chung Ma Student ︰ Ya-Wen Yang (Amy) Student number ： 9651004M Date ： 97/05/14

2. 2008/05/142 Introduction An organization's financial performance must be sufficient to meet the cash flow requirements of the strategic plan. Maintain or improve the financial integrity of the organization within an appropriate credit and risk context.

3. 2008/05/143 Six key concepts 1.Effectively Managing the Capital Cycle 2.Analyzing and Boosting Creditworthiness 3.Ensuring Fully Integrated Strategic and Financial Planning 4.Effectively Allocating Capital 5.Strategic Budgeting 6.Achieving the Right Capital Structure

4. 2008/05/144 Concept 1. Effectively Managing the Capital Cycle select strategic options monitoring option implementation financial planning

5. 2008/05/145 The capital cycle includes three essential components A continuous, integrated, strategic financial planning process. A process for achieving a capital structure. A process for allocating capital.

6. 2008/05/146 A brief summary To succeed in a competitive environment, an organization's capital cycle must be competently managed.

7. 2008/05/147 Concept 2. Analyzing and Boosting Creditworthiness An organization depends on its ability to raise affordable capital in the debt markets. Creditworthy organizations have improved capital market opportunities. Creditworthy organizations are market consolidators.

8. 2008/05/148 Key creditworthiness factors governance and management market and strategic position financial performance debt position

9. 2008/05/149 A brief summary Healthcare organizations must understand the importance of creditworthiness and maintain a strong credit position will do well in the future.

10. 2008/05/1410 Concept 3. Ensuring Fully Integrated Strategic and Financial Planning A healthcare organization's strategic mission must be supported by integrated strategic and financial planning. An organization's strategic plan focuses both on external market needs and how best to meet those needs with the organization's resources.

11. 2008/05/1411 A brief summary Organizations identify the level of operating change required to meet the profitability targets and determines where the capital required to implement selected strategies will be obtained in the short term and the long term.

12. 2008/05/1412 Concept 4. Effectively Allocating Capital In an environment of scarce resources, healthcare executives must allocate available capital. Healthcare organizations have sufficient capital capacity to meet their comprehensive strategic capital requirements.

13. 2008/05/1413 net present value (NPV) A core technique used in corporate finance net present value (NPV) analysis NPV analysis distills the financial ebbs and flows of a project to a single dollar value.

14. 2008/05/1414 Concept 5. Strategic Budgeting Strategic budgeting must be ： quantify specific measurable

15. 2008/05/1415 Eight key steps of strategic budgeting Develop the strategic and financial plans Communicate strategic and financial objectives provide feedback about targets Develop a first-pass budget Review the first-pass budget Make adjustments and finalize the budget Use the budget as a management tool

16. 2008/05/1416 A brief summary An integrated budgeting process requires the participation of department-level managers.

17. 2008/05/1417 Concept 6. Achieving the Right Capital Structure The strategic and proactive approach to capital structure management. Capital structures can lower the overall cost of capital and can maximize the return of assets versus the cost of liabilities.

18. 2008/05/1418 A brief summary Creatively managed capital structure has become a significant competitive advantage for many hospitals.

19. 2008/05/1419 Summary Achieving financial success requires an executive team. A financially sound business plan that generates a profitable bottom line is a prerequisite for meeting the rapidly expanding healthcare needs of patients and communities.

20. 2008/05/1420 Thanks for your attention!

21. 2008/05/1421 Q&AQ&A

22. 2008/05/1422 proverb s I can’t take it any more ! Turn over a new leaf !

23. 2008/05/1423 Allen is a drug dealer. Judy is Allen’s girlfriend. John is Judy’s boyfriend afterward.

24. 2008/05/1424 Someday… Judy ： Could you stop to sell the drugs ? Allen ： It’s man’s business. Don’t interfere ! So... Judy says… I can’t take it any more ! I’ll break up with you.

25. 2008/05/1425 After one month …

26. 2008/05/1426 Allen was caught by the police and in prison …

27. 2008/05/1427 He was self-reflecting in prison.

28. 2008/05/1428 Five years later … He is discharged from the prison and decide to turn over a new leaf in order to reverse her girlfriend.

29. 2008/05/1429 But………..

30. 2008/05/1430 Judy has gotten together with John…