Description This interdisciplinary, integrative experience requires learners to pull from the knowledge, skills, and abilities developed over the didactic curriculum. Learners will apply knowledge and perspective from multiple areas of expertise to holistically solve problems through research and evidence-based decision making. Learners will be confronted with a case study scenario, including related demographic, epidemiological, and organizational data. After evaluating internal and external environmental factors, learners will individually design strategic planning initiatives and ultimately create evidence-based solutions to improve cost, access, and quality of care. Finally, each learner will present their work applying appropriate communication strategies based on communication goals and audience characteristics. This is stage four of five of the Capstone Project. Assignment Instructions This assignment will be completed and uploaded (in its entirety) for verification, review, and grading via Canvas and TaskStream. This assignment will allow you to identify financial metrics that are essential to the healthcare organization's financial viability. Next, you will analyze the financial condition of a healthcare organization. Finally, you will apply strategic planning concepts that incorporate financial analysis based on current literature and industry best practices. This assignment addresses the following competencies: CAHME Domain Alignment HCA Competency Alignment Competency Overview and Description Critical Thinking, Analysis, and Problem Solving Analytical Thinking Communications and Interpersonal Effectiveness Communication Skills I Writing Critical Thinking, Analysis, and Problem Solving Financial Skills Critical Thinking, Analysis, and Problem Solving Human Resource Management Critical Thinking, Analysis, and Problem Solving Information Seeking Critical Thinking, Analysis, and Problem Solving Information Technology Management Critical Thinking, Analysis, and Problem Solving Process and Quality Improvement Critical Thinking, Analysis, and Problem Solving Performance Measurement Management and Leadership Strategic Orientation Please see the About This Course area of the Canvas course room for detailed information regarding competency reinforcement and/or measurement criteria. Assignment Due Date This assignment is due at the end of Module 4, by 11:59 pm EST. Capstone Project Financial Conditions and Projections Assignment Page 2 of 3 Financial Conditions and Projections Assignment For this assignment, you will analyze the provided financial spreadsheets that include balance sheets and income statements for all hospitals in the region. You decide what calculations/benchmarks are most important to understand the Cape Fear MSA and how they tie back to CFHS. Several key financial metric suggestions are listed below. Include your financial metrics in a table/tables in the appendix. Then, you will draft a two (2) page narrative describing how you interpreted the data, including key insights gained from the related analyses. Do not provide any strategic recommendations in this assignment as that will take place in a future assignment. Additionally, there is no need to repeat any of the background information provided in the case study. Only focus on your analysis and interpretation of the financial data. The narrative should be double spaced, 12pt font, and include references to relevant data visualization(s). The narrative should be followed by a reference section (i.e. peer review, trade, or professional articles supporting your analyses) and an appendix with the relevant data visualizations. All writing and data visualizations (e.g. charts, graphs, tables) should follow proper APA formatting guidelines, as appropriate. You will find the Wayland and McDonald (2016) Chapter 26, Financial Fit Assessment and Projection, helpful. When completing the financial analysis, consider the following as they relate to your identified problem: Human Capital Management Operational Improvement Marketing Economics Financials Information Technology o Interoperability o Cost initial vs ongoing Related to the organizations income statements, here are some questions to consider. This is not an exhaustive list of all variables for consideration. There may be additional financial indicators that would be more relevant to your strategic initiative: What is the organizations Net Operating Revenue? What is the organizations Total Expenses? What is the organizations Net Operating Income? What is the organizations Net Total Income? What is the difference between the Net Total Income and Net Operating Income? Which provides a more relevant picture of how the hospital is performing financially? What is the organizations Total Margin and Operating Margin? Analyze the two. How do you standardize financial data (e.g. revenue, expenses) to compare hospitals of varying sizes? (Consider benchmarks) Related to the organizations balance sheets, here are some questions to consider. This is not an exhaustive list of all variables for consideration. There may be additional financial indicators that would be more relevant to your strategic initiative: What is the organizations Total Current Assets? What is the organizations Total Assets? What is the organizations Total Current Liabilities? What is the organizations Total Liabilities and Equity? What is the organizations Net Working Capital? How do you standardize financial data (e.g. assets, liabilities) to compare hospitals of varying sizes? (Consider benchmarks) Page 3 of 3 Place each hospital in the appropriate financial quadrant using Total Margin. Then, in a separate table, place each hospital in the appropriate financial quadrant using Operating Margin. Include the two tables in the appendix of your narrative, analyzing whether the tables are similar or different in the narrative and how it may impact the strategic plan. Financial Quadrants Total Margin Moderate (2-4% Margin) Strong (>4% Margin) Distressed (<0% Margin) Flat (0-1.9% Margin) Financial Quadrants Operating Margin Moderate (2-4% Margin) Strong (>4% Margin) Distressed (<0% Margin) Flat (0-1.9% Margin)