You are the new administrator of the Miami Medical Group, a 50 physician multi-specialty group practice. You have 10 years of industry experience and an MHA from the University of Colorado. The physicians in the group have always been very conservative in dealing with the group's finances.  In the past, the group has never kept extra money in the bank but has distributed it to the doctors.  As the group has grown over the past few years, younger physicians have decided to make changes and update their business practices.  The younger physicians now control the Board of Directors. You have been asked by the board chairman to design a cash management program that will benefit the practice but keep the older doctors pacified. 

The Miami Medical Group occupies a 15,000-square-foot building, which houses most of the physicians and all of the ancillary services.  The group also operates 3 5,000 square foot practices geographically dispersed throughout the city's various ethnic communities.  The group generates $20,000,000 per year in revenue with 70% operating expenses.

a) Explain an outline of your cash management plan for presentation to the board.

b)  Explain all of the critical issues facing the group on the financial landscape and explain how the doctors will ultimately benefit from the plan.

Answer rating: 100% (QA)

a Cash Management Plan Outline Establish a reserve fund Create a reserve fund to ensure the groups financial stability This reserve fund will be used ... View the full answer