Business Operations Presentation
Your business operations skill is important for being able to identify risks associated with various financing options and projects for capital projects that fund growth, purchase equipment and inventory, hire additional staff, and build new facilities.
Scenario
You have been promoted to CFO at your hospital. The hospital’s CEO has requested that you present an evaluation of budgetary options for future purchases based on industry competition to the board of directors. In the presentation, focus on budgetary financing strategies and solutions in the operations of the hospital.
Preparation
If you address nursing shortage, supply-chain disruption, or outsourcing in your assessment deliverable presentation, review and consider using the following articles from the “Summative Assessment: Business Operations Presentation” section in the Week 5 University Library as the primary resources for your presentation.
Nursing shortage topic resource: “As COVID-19 Worsens Nursing Shortage, Madison Hospitals, Schools Step Up”
Supply-chain disruption topic resource: “Inflation Rattles Hospital Supply Chain and Labor Pool With no End in Sight”
Outsourcing topic resource: “Research and Markets Adds Report: Medical Billing Outsourcing Market” and “The Good, the Bad and the Outsourced"
Assessment Deliverable
Create a 12- to 15-slide Microsoft PowerPoint® presentation in which you:
Evaluate effective financial options for outsourcing operations of key departments, such as information systems, medical billing, and human resources (HR).
Evaluate how you would implement just-in-time inventory management (e.g., in the OR, central sterile supply, or pharmacy departments) to optimize inventory management.
Analyze the advantages and disadvantages of using a flexible budget to meet the organization’s staffing needs.
Describe the decision-making factors when determining whether to lease or buy equipment (e.g., Should I buy or lease an MRI or CT scan?).
Describe the effect of financing strategies on the cost of capital.
Identify and describe the benefits and risks of debt financing (e.g., how to manage working capital through accounts payable).
Sample Solution
Budgetary Financing Strategies and Solutions for Hospital Growth
Slide 1: Title Slide
- Hospital Name
- Your Name - CFO
- Presentation Title: Budgetary Options for Future Purchases
- Briefly introduce yourself as the new CFO.
- State the purpose of the presentation: To evaluate budgetary options for future purchases based on industry competition.
- Briefly discuss the current competitive landscape in the healthcare industry.
- Highlight areas like patient acquisition, treatment efficiency, and cost-effectiveness.
- Introduce the concept of budgetary strategies and their role in achieving hospital goals.
- Evaluate outsourcing key departments (IT, Medical Billing, HR).
- Discuss potential cost savings, efficiency gains, and access to expertise.
- Acknowledge potential risks like data security, loss of control, and vendor dependence.
- Explain the concept of JIT inventory management and its benefits.
- Focus on optimizing inventory levels in departments like OR, Sterile Supply, and Pharmacy.
- Discuss potential challenges like supply chain disruptions and managing buffer stock.
- Define a flexible budget and its advantages for fluctuating staffing needs.
- Illustrate how a flexible budget adjusts expenses based on activity levels (e.g., patient volume).
- Show an example of a flexible budget for a department like nursing.
- Discuss potential limitations of flexible budgeting, like forecasting accuracy.
- Analyze factors influencing the decision to lease or buy equipment (e.g., MRI, CT scan).
- Consider factors like:
- Equipment lifespan and technology upgrades.
- Cash flow implications.
- Tax benefits of each option.
- Explain the concept of the cost of capital and its impact on budgeting decisions.
- Discuss how financing strategies affect the cost of capital (debt vs. equity).
- Describe debt financing and its benefits (access to capital, potential tax advantages).
- Discuss risks of debt financing, such as interest payments, default risk, and impact on credit rating.
- Briefly mention working capital management and how accounts payable can be used strategically with debt.
- Summarize key takeaways from the presentation.
- Emphasize the importance of choosing the right budgetary strategy based on specific needs and competitive landscape.
- Allocate a slide for questions from the board of directors.
- Include relevant data, charts, and visuals to enhance the presentation.
- Cite your sources from the university library under a references slide (optional).