Financial Management for Hospitals
As an aspiring manager you are tasked with creating a report which covers the following
topics:
Explain and evaluate why the motive of profit maximisation is not appropriate within Financial Management. Critically consider which alternative objectives are more appropriate and will lead to long term financial stability and/or improvement within either a private or public healthcare business.
Critically explain and evaluate how the time value of money can reduce the cost of longterm investment in a healthcare business.
Evaluate and explain the financial benefits of leasing for a healthcare organisation?
Critically evaluate the use of a Balanced Scorecard in your organisation (or a previous
organisation you have worked in:
Outline the Key Strategy (What is the overall goal?)
Develop a series of metrics based on Financial Performance, Customer, Internal Processes and finally Learning and Growth
Financial Management for Hospitals
Explain and identify how your Key Performance Indicators (KPIs) will meet the strategy goals
Evaluate the challenges of Balanced Scorecard and the challenges to achieving the goals in point 2c (20)
Zebra Pharma plc is looking to take on a new investment. The company will evaluate
two mutually exclusive projects, whose details are given below. The company’s cost of
capital is 12%.
| BD Millions | Project A | Project B |
| Initial Investment | (125) | (138) |
| Year 1 | 40 | 80 |
| Year 2 | 50 | 60 |
| Year 3 | 60 | 50 |
| Year 4 | 50 | 20 |
| Year 5 | 75 | 10 |
Calculate the Payback period
Calculate the Net Present Value (NPV) of both projects (20)
Critically discuss the merits of each investment appraisal method, then discuss the
result of the evaluations you have made of the two projects and advise the company
which project should be undertaken (10)
Target word count: 3,500 words
Explain and evaluate why the motive of profit maximisation is not appropriate within Financial Management. Critically consider which alternative objectives are more appropriate and will lead to long term financial stability and/or improvement within either a private or public healthcare business.
Critically explain and evaluate how the time value of money can reduce the cost of longterm investment in a healthcare business.
Evaluate and explain the financial benefits of leasing for a healthcare organisation? APA.