The Consultant Report provides an opportunity for the student (working in groups) to synthesize the topics learned in this course into a project. This project provides the group with a hypothetical organization with some financial, operational, and strategic assumptions and asks the group to prepare a report to the Organization?s Senior Management and Board of Directors with an assessment as to how the Organization is currently performing and what recommendations are important to implement in order for the Organization to succeed in the future.

For this assignment, you will need to refer to the Creekside Community Hospital Data (also attached).

Utilize the following information:

• Hospital Characteristics (see attached financials)
• Competitive environment, declining market share to competitors
• Moderate to substantial debt
• Facility and equipment that is fairly current, but will have future investments in capital
• Partial electronic medical record system
• Mediocre quality and patient satisfaction scores
• Few employed physicians/ no hospitalist program
• Split payor mix between public and private
• Overall not profitable from operations in most recent fiscal year
• Local Physician Practices Characteristics
  • Small primary care and specialty practices (mixture of solo and small groups)
  • Independent ownership
  • Loose affiliation with hospital
  • Combination of office and hospital practice

Both Hospital and Physician organizations have contract only relationships with payors and suppliers and are currently not working with either in any strategic way financially.

Your group is hired as a financial consultant to prepare a financial strategy (or strategies) to the hospital as they transition from the current environment to the future environment that will be impacted by healthcare reform due to governmental intervention as well as changes from within the industry itself.

Specifically, your strategy should consider more than one alternative (outcomes). When formulating your response, consider addressing the following topics at a minimum (feel free to add other financial topics as well). This Consultant?s Report should include about one page for each topic:

1. 1.Addresshowastrongoperatingandcapitalbudgetprocesswouldassistachievingfuturefinancialgoals(what toolsmightyouemploy?).Explainwhyaccurate costallocationisimportant.Whatwouldbetheprioritiesforcapitalbudgets(ingeneral,notspecifically)?
3. 2. Explain how you would advise both the hospital and physicians (separately or jointly) to work with payors and suppliers in this new environment.

All sources, including course materials, must be cited in text in APA style.

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