Essentials of Finance



Essentials of Finance

Introduction

The financial management of any company is very difficult and responsible task. It requires deep and comprehensive knowledge of the market and regulations. It is an effective process of utilizing financial resources company. The essence of financial management is the movement of money which shaped best relationship with cost and revenue. The primary objective of financial management process is to ensure the ongoing solvency of the company which impact on the long term on the company as a positive opinion. The capital structure of management is formed which shows the components of the enterprise. These are taken into an account of the relationship between equity capital and foreign capital.

Capital structure should reflect the actual and reasonable balance between business risk and financial risk, the greater the risk the company the lower the financial risk. If the company structure of the company predicted wrong then it would affect adversely on the financial movement of the company and hence the value of the company reduces rather than increasing which is the main goal and objective of financial managers.

This essay focuses on the healthcare organization, its capital structure and other financial calculation which structure the organization in proper manner.

Discussion

Traditionally, hospitals have been organized in departments of medical, diagnostic mainframes; mainframes support services and central units of general services, responding to a functional criterion.

The division of labor in departments of medical services responded to clinical specialties oriented guts, organs and various body parts, such as cardiology, dermatology, dentistry, endocrinology, audiology, gastroenterology, gynecology and obstetrics, nephrology, pulmonology, neurology , dentistry, ophthalmology, oncology, otolaryngology, pediatrics, psychology, psychiatry, orthopedics, urology, cytology, rheumatology, among others. The central diagnostic units have been developed in response to a division of labor diagnostic specialties, such as laboratories, nuclear medicine gamma camera, radiology (general radiography, mammography, CT linear), and magnetic resonance imaging, among others (Zimmerer & Scarborough 2002).

The central units of general services perform functions necessary for the functioning of hospitals but of secondary importance, such as general management, finance, personnel, and marketing. The central units of support services meet the aid requirements of the three classes above departments and hospital patients, such as ambulance, pharmacy, injections, dressings, blood pressure, wardrobe, cleaning, and maintenance, among others.

Overview of the Company

Indus Hospital is a diversified health and well-being hospital. It has operations in the United States and Puerto Rico that provide healthcare services and health benefits to more than 75 million people. Indus Hospital is leader in both the commercial and government health plan markets. The commercial market represents about 75.0% of the company's medical members, while Medicare (15.0%) and Medicaid (10.0%) comprise the remaining 25.0% (Siddiqui, 2005).

Indus Hospital separated its enterprise into two main segments in mid-2010: Indus Healthcare and Indus-Techo. Indus Healthcare contains all of the benefit businesses while Indus-Techo is a set of healthcare services and technology assets. The Indus Healthcare segment represents more than 90.0% of the company's total revenue, but only 75.0% of operating ...