🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Finance
4
answers
0
watching
153
views
14 Jan 2018

Which is the better method for valuing a health care organization, the DCF approach or the market multiple approach, please explain you reasoning.

Watch
4
answers
0
watching
153
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Elin Hessel
Elin HesselLv2
16 Jan 2018
Already have an account? Log in
Share

Related questions

Refer to the Metropolis Health System (MHS) case study appearing in Chapter 25. Read about the various types of services offered by MHS.

The MHS organization chart has seven major areas of responsibility, each headed by a senior vice president. Select one of the seven areas and design additional levels of detail that indicate the managers. If you have considerable detail you may choose one department (such as ambulatory operations) instead of the entire area of responsibility for that senior vice president.

Do you believe your design of the detailed organization chart indicates centralized or decentralized lines of authority for decision making? Can you explain your approach in one to two sentences?

***********BOOK Health Care Finance:Basic Tools For Nonfinancial Managers | 9781449674175 ****************

1. What would a renter’s insurance policy cover in case of a fire? (Points : 2)
Damages to your neighbor's personal property
Any damages to the building structure
Temporary living expenses, like hotel
Your monthly paycheck
Question 2.2. The insurance designed to help with nursing home or in-home care due to chronic illness is called: (Points : 2)
Medicare
Major medical
Comprehensive major medical
Nursing home care
Long-term care
Question 3.3. A liability suit could result when: (Points : 2)
Lightning strikes your home
Your son falls down the stairs of your home
Your automobile is stolen
Your dog bites the neighbor
Smoke from the fireplace fills your house
Question 4.4. What approach, would determine the amount of life insurance for your family to maintain its current lifestyle and funds after your death? (Points : 2)
Earnings multiple approach
Needs approach
Cash liquidity approach
Funds analysis approach
Question 5.5. The basic purpose of insurance is: (Points : 2)
Protect your health
Protect you from the risk of loss
Supplement your income
Help you from making bad decisions
Question 6.6. Basic health-care benefits cover: (Points : 2)
Hospital expenses only
Hospital and surgical expenses
Hospital, and surgical and physician expenses
There is no basic health-care insurance
Question 7.7. For auto insurance, property coverage pays for: (Points : 2)
Your legal responsibility to others for bodily injury
The cost of treating injuries, rehabilitation, lost wages, and funeral costs
Damage or theft of your car
All of the above
Question 8.8. Life insurance policy designates a primary person who is intended to be provided for. Who is this person? (Points : 2)
beneficiary
contingent beneficiary
policyholder
insured
Question 9.9. Which statement accurately describes term life insurance? (Points : 2)
Provides no investment features
Costs more than other types of life insurance
Has premiums that decrease over one's lifetime
Pays benefits to the insured when the insured reaches age 65
Question 10.10. What is the primary purpose of buying life insurance? (Points : 2)
as a tax shelter
to provide protection from financial losses
as an investment
to cover personal property

10. A good cost driver does all of the following except a. Allocates costs fairly. b. Helps in controlling costs. c. Can be traditional or activity based. d. Provides greater benefits than its cost. e. All of the above are elements of a good cost driver.

11. In allocating support services to other support service departments, which method is easiest? a. Direct method b. Reciprocal method c. Step-down method

12. In allocating support services to other support service departments, which method is most accurate? a. Direct method b. Reciprocal method c. Step-down method

13. Activity based costing is a. Generally better than traditional costing, but more expensive to implement than traditional costing. b. Is only suitable for large organizations. c. Generally not as accurate as traditional costing. d. Is generally less expensive to implement than traditional costing.

14. Which of the following is not true? a. A price setter usually has a large market share, b. Price setters must watch costs more closely than price takers, c. A health provider in a competitive market is usually a price taker, d. A health care provider can be both a price setter and a price taker, e. All of the above are true.

15. Health care providers are a. Price takers. b. Price setters. c. A price setter or price taker, depending on their costing method. d. Either a price setter or price taker, depending on the competition.

16. To allocate the cost of Financial Services in a Health Care setting a. Patient revenues is a better cost driver. b. The number of bills is a better cost driver. c. We are better to not allocate the cost of Financial Services. d. Using both the number of bills and patient revenues may be the best method.

17. Which is more likely to be used by a price taker? a. Target costing, b. Full cost pricing, c. Cross subsidization, d. Marginal cost pricing.

18. Which is more likely to be used by a price setter wanting to provide a full range of services to constituents at various wealth levels? a. Target costing b. Full cost pricing c. Cross subsidization d. Marginal cost pricing

19. Government intervention in healthcare, to insure care for the poor, will likely move healthcare providers toward a. Being price takers and using target costing b. Being price setters and using target costing c. Being price setters and using cross subsidization d. Being price takers and using cross subsidization

20. If long-run prices are set on the basis of marginal costs, the organization may a. not recover its total costs. b. not recover its direct costs. c. temporarily build market share. d. not recover its overhead fixed costs. e. all of the above.

21. To set capitation rates, which method is best? a. fee-for-service method, b. demographic approach, c. budgetary, or cost approach, d. in general, one approach is as good as another.

22. Which is least likely to change? a. Corporate goals b. Vision statement c. Values statement d. Mission statement e. Corporate objectives

23. Which is most likely the shortest? a. Vision statement b. Corporate goals c. Values statement d. Mission statement e. Corporate objectives

24. Using the bottom-up, or participatory approach a. budgets are first developed by individuals who are most knowledgeable regarding their departments’ or programs’ financial needs. b. often initially results in an organizational budget that is not financially feasible. c. requires component budgets to be sent back to the original preparers for revision. d. does not reflect top management’s perspective from the start. e. All of the above.

25. Which of the following will provide the largest differences? a. Comparing the static budget to the flexible budget, b. Comparing the static budget to the actual results, c. Comparing the actual results to the flexible budget, d. We cannot tell without the actual details.

26. During an economic downturn a. Conventional budgeting is more useful because the budget is likely to have a great deal of change. b. Zero-based budgeting is more useful because the budget is likely to have a great deal of change. c. Conventional budgeting is more useful because the previous budget provides a good starting point. d. Zero-based budgeting is more useful because the previous budget provides a good starting point.

27. A cash budget is useful a. For liquidity planning. b. To project cash inflows and outflows. c. Can show when the organization can invest excess cash. d. Can show when the organization needs to borrow cash. e. All of the above.

Related Documents

FINS1612 Chapter 5: Viney8e_IRM_ch05
bluebee342
FIN 325 Lecture 1: FINANCE COURSES
pinkguinea-pig475
FIN 301
Final Exam
Study Guide
FIN 301 Midterm: FIN301 Exam 1 Study Guide
yellowminnow102

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in