A medical center is expanding its hospital staff to accommodate the increasing number of flu cases seen over the past weeks.
Which type of finance activity is described in this scenario?
Cost
Cash
Capital
Control - ANSWER-Cost
A healthcare organization's senior finance leader is respons...
a medical center is expanding its hospital staff t
which type of finance activity is described in thi
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C428 Preassessment
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C428 Preassessment Exam 100% Correct!!
A medical center is expanding its hospital staff to accommodate the increasing number of flu cases
seen over the past weeks.
Which type of finance activity is described in this scenario?
Cost
Cash
Capital
Control - ANSWER-Cost
A healthcare organization's senior finance leader is responsible for all financial plans and activities
related to reimbursement, accounting, budgeting, and management for a healthcare system's
financial well-being.
The most common structures of hospitals are religious, secular, or academic. These organizations
raise capital through donations and tax-exempt debt.
What is the legal structure of hospitals that raise capital through these means?
Not-for-profit: to break even
For-profit: to maximize profits
For-profit: to maximize shareholder value
,Not-for-profit: to meet charitable purposes - ANSWER-Not-for-profit: to meet charitable purposes
An established diagnostic center needs a new mammogram machine. The center has incurred higher
debt and is very highly leveraged but decides to apply for another secured loan at its local bank.
What will the bank decide about the secured loan?
The interest rate will be lower.
The interest rate will be higher.
The interest rate will be variable.
The interest rate will remain stable. - ANSWER-The interest rate will be higher.
A private hospital with a successful history of traditional patient care is seeking to open a holistic
treatment center off-site. It has secured an initial loan of five million dollars.
How would the nature of this venture affect the interest rate that could be expected on the loan?
A lower interest rate loan due to the organization's current assets
A higher interest rate loan due to the hospital's success rate
A lower interest rate loan due to the location of new site
A higher interest rate loan due to the alternative patient care - ANSWER-A higher interest rate loan
due to the alternative patient care
What is the organization's business debt after the debt is paid off?
$10,000
$15,000
$20,000
$26,000 - ANSWER-$26,000
(25000-5000)+6000 = 26000
, A not-for-profit clinic is required to make monthly payments of $31,819.65 for the next 10 years to
repay its long-term debt. The interest rate is 5%.
What is the clinic's current level of business debt?
$3 million
$4 million
$3.5 million
$2.5 million - ANSWER-$3 million
BAII Plus:
PMT = 31819.5
N = 120
I/Y = 0.4167
FV = 0
CPT PV = 2999944.27 (3 million)
A healthcare organization has the following financial information available in a balance sheet:
Assets:
Cash of $10,000
Accounts receivable of $5,000
Machinery & equipment of $50,000
Liabilities:
Accounts payable of $6,000
Loans payable of $25,000
Common stock of $34,000
The organization decides to use $5,000 of the organization cash reserves to pay off some of the loans
payable of $25,000.
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