Question: Please see another post for the updated on the same question. My apologies first and second page missing. Thank you The content of the presentation

Please see another post for the updated on the same question. My apologies first and second page missing. Thank you

The content of the presentation should focus on:

Introduction - Stating the purpose and the importance of the case and provide an overview of the case.

Organization - Describe the type of financial environment the organization in the case is operating in using the relevant course terms, concepts, principles, theories and knowledge

Techniques, methods, tools, etc. - Explain and analyze the case problem by applying the relevant course concepts, principles, theories and knowledge

Accurate use of case information/lessons - apply the relevant course terms, concepts, principles, theories and knowledge to make informed recommendations for a solution and develop a team solution. Useful lessons learned for health managers from the case need to be identified

Please see another post for the updated on the same question. My

apologies first and second page missing. Thank you The content of the

presentation should focus on: Introduction - Stating the purpose and the importance

of the case and provide an overview of the case. Organization -

Describe the type of financial environment the organization in the case is

Case 22: Northwest Suburban Health Syatem 7 eling costs and an additional $100 per month in utilities and insurance costs (in 2013 dollars). Note that all leases are negotiated for a five-year period, so lease payments are not affected by inflation, which is expected to average about 3 percent per year. The expanded print shop would require an increase in labor costs of $98,400; these costs are summarized in Exhibit 22.3. Labor costs to run the current print shop amount to $50,000 annually, and all current print shop personnel would be retained if the expansion takes place. After discussing the print shop situation with the System's chief financial officer,Susan defined three possible print shop alternatives: l. Close the print shop completely, and use outside vendors for all printing. 2. Expand the print shop as envisioned. Essentially, this means expanding the print shop and performing all feasible work in-house. Under this proposal, the print shop would remain under SUPPORT, the System's not-for-profit service subsidiary. Thus, there would be no tax consequences Expand the print shop as in Alternative 2. However, all printing activities would be transferred to PROPERTIES, the System's for-profit subsidiary. In this situation, capital expenses, such as depreciation 3. and lease payments, would be tax deductible, however, all profits would be taxable. The primary motivation behind this alternative is to permit the print shop to enter the for-profit commercial printing business. Regarding Alternative 1, many outsiders to the hospital industry would be surprised at the amount of outsourcing that takes place. The business of running a hospital is extremely complicated, and many fac- ets of its operations can be more efficiently run by outside companies that specialize in specific functions. The three most common functions that are outsourced (by number of hospitals) are laundry, housekeep- ing, and clinical/diagnostic equipment maintenance. However, the list goes on and on. In fact, a significant number of hospitals are now outsourcing some patient care (clinical) services, the most common being anesthesia, emergency department, dialysis, and imaging services. Some hospitals are outsourcing to such a degree that they have created Case 22: Northwest Suburban Health Syatem 7 eling costs and an additional $100 per month in utilities and insurance costs (in 2013 dollars). Note that all leases are negotiated for a five-year period, so lease payments are not affected by inflation, which is expected to average about 3 percent per year. The expanded print shop would require an increase in labor costs of $98,400; these costs are summarized in Exhibit 22.3. Labor costs to run the current print shop amount to $50,000 annually, and all current print shop personnel would be retained if the expansion takes place. After discussing the print shop situation with the System's chief financial officer,Susan defined three possible print shop alternatives: l. Close the print shop completely, and use outside vendors for all printing. 2. Expand the print shop as envisioned. Essentially, this means expanding the print shop and performing all feasible work in-house. Under this proposal, the print shop would remain under SUPPORT, the System's not-for-profit service subsidiary. Thus, there would be no tax consequences Expand the print shop as in Alternative 2. However, all printing activities would be transferred to PROPERTIES, the System's for-profit subsidiary. In this situation, capital expenses, such as depreciation 3. and lease payments, would be tax deductible, however, all profits would be taxable. The primary motivation behind this alternative is to permit the print shop to enter the for-profit commercial printing business. Regarding Alternative 1, many outsiders to the hospital industry would be surprised at the amount of outsourcing that takes place. The business of running a hospital is extremely complicated, and many fac- ets of its operations can be more efficiently run by outside companies that specialize in specific functions. The three most common functions that are outsourced (by number of hospitals) are laundry, housekeep- ing, and clinical/diagnostic equipment maintenance. However, the list goes on and on. In fact, a significant number of hospitals are now outsourcing some patient care (clinical) services, the most common being anesthesia, emergency department, dialysis, and imaging services. Some hospitals are outsourcing to such a degree that they have created

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