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Hospital Financial Model Paper

862 Words4 Pages

Hospital Financial Model
Dramatic shifts in the delivery of healthcare services have changed the way modern hospitals function: now they have to develop effective management and financial strategies to survive in a competitive market. As a financial modeling specialist, I know the ins-and-outs of the challenges encountered by modern businesses due to the numerous strategic fallacies. Though 75% of small business owners are confident in their strategic planning, 20% of them fail in the first year, 50% - in the fifth, and 70% - in the 10th year after the launch. This is why I believe that healthcare valuation is a proper decision toward helping hospitals survive in competitive circumstances.
Hospital Financial Model Saves For-Profit Clinics
Obviously, …show more content…

Speaking generally, financial modeling is crucial for all types of businesses nowadays, but there are several critical factors that make hospital valuation necessary.
The initiatives of investor-owned hospitals are on the rise; today for-profit clinics represent 58% of all the U.S. community hospitals;
Keeping hospital financial metrics saves healthcare from bankruptcy. In particular, hospital valuation helps clinics avoid the implementation of certain equipment that might put their cost-effectiveness at …show more content…

Applying this model to healthcare valuation, we can determine the potential value of different healthcare services or divisions.
Comparative company analysis model is used to compare the financial performance of the company with similar businesses within the same industry. As an illustration, in hospital management we can apply this model, comparing hospital financial metrics of several healthcare establishments.
Discounted cash flow model is used to estimate the value of a business with the help of predicting the sum of future cash flows.
For creating hospital financial model in excel, we used the last type of modeling because the main purpose of our client was to understand whether her idea of a startup is profitable. You can find more information about other types of financial models here. In this way, according to the expectable outcomes of financial planning, we focused on a certain type of financial model, defined the key expectations, and set up a range of goals to be achieved. Let’s take a look at the specific case from my practice and explore how to make model of hospital. Implementation of a Business

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