About This Chapter
Project Costs & Evaluation in Healthcare - Chapter Summary
Follow along with our expert instructors to see how healthcare finance professionals project and evaluate costs. Comprised of short and simple lessons, this chapter discusses several analysis methods that are used in finance, as well as the applications of financial risk management, benchmarking, budget evaluation and more. We me've made it easy to check your understanding of the material with lesson-specific quizzes and a comprehensive chapter exam. If you have any questions, you can submit them through our Ask the Expert feature. When you're finished working through the chapter, you should be able to:
- Identify the primary objectives for risk analysis and management in business
- Compare management methods for several types of financial risks
- Analyze examples of break-even analysis, marginal analysis and project cash flow analysis
- Calculate the internal rate of return
- Use the net present value method to evaluate a budget
- Define the contribution margin formula
- Explain the purpose of benchmarking in healthcare planning
1. Risk Analysis & Risk Management in Business: Overview, Objectives & Comparison
A successful business requires careful attention to the allocation of resources and, just as important, to the degree to which those resources are exposed to risk. In this lesson, we'll discuss the importance of risk analysis and management in business.
2. Financial Risk: Types, Examples & Management Methods
In this lesson, you will explore the various types of risks faced by a business and understand how financial risk is different from other types of risks. Then, you will learn about the different types of financial risks and methods to manage them.
3. Project Cash Flow: Analysis & Examples
When a company is considering a new project or investment, it must have some method to evaluate whether to proceed. In this lesson, you'll learn how relevant cash flows can help with this decision.
4. Break-Even Analysis: Definition & Example
Performing a break-even analysis can help you make decisions regarding how much of your product or service you need to sell to make a profit. In this lesson, you'll learn what a break-even analysis is and how it is calculated.
5. Marginal Analysis in Economics: Definition, Formula & Examples
In this lesson, we'll discuss marginal analysis, a very important economic concept. It explains how individuals and businesses make decisions regarding commodities. We'll go over the formula and look at examples before concluding the lesson with a quiz.
6. Internal Rate of Return Method: Definition & Calculation
Financial management involves determining which long-term investments are right for a company. There are several techniques used by management to analyze potential investments and determine their worthiness. One technique is the internal rate of return method.
7. Evaluating a Budget Using the Net Present Value Method
Explore the net present value method of capital budgeting and the associated decision rules for accepting or rejecting capital projects. Evaluate a capital budget and decide which projects should be accepted.
8. Contribution Margin: Definition & Formula
This lesson explains what a contribution margin is, how is it calculated, and how it affects the overall financial status of a business. An example is offered to help illustrate the importance of contribution margins.
9. Benchmarking in Healthcare Planning: Purpose & Questions
Benchmarking is a tool that helps identify and improve best practices. This lesson will discuss the benchmarking in healthcare planning including its purpose and questions to ask.
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Other chapters within the Health 305: Healthcare Finance & Budgeting course
- Introduction to Healthcare Finance
- Organizational Structure in Healthcare
- Healthcare Organizations & Services
- Financial Reporting in Healthcare
- Health Insurance & Reimbursement
- Estimating Healthcare Costs
- Healthcare Financial Management
- Accounting & Income Statements in Healthcare
- Using Balance Sheets in Healthcare Finance
- Financial Assessment in Healthcare
- Healthcare Planning & Budgeting
- Healthcare Staffing Needs & Forecasting
- Trends in Healthcare
- Required Assignment for Health 305