Financial Modeling in Health Care: Turning Risk Into Informed Decisions
What health care situations call for a good financial model?
Example situation #1
You’re a hospital with financial pressures and demographic shifts on the horizon. You’ve done the work. Your strategic planning process, anchored by industry analysis and validated surveys, has landed on several options for financial sustainability.
One of the lynchpins to your growth strategy is an expanded orthopedic service line, including another surgeon. Leadership believes the expansion should be accretive; however, payer mix shifts, ramp-up timing, and surgeon productivity assumptions make the financial outcome far from certain.
Example situation #2
You’re a life plan community. You know there is a surging need for senior housing and care.
You’ve used market and demographic analyses to pinpoint where and how you want to expand. First, new independent living units followed with a second phase for additional assisted living and memory care capacity.
How many units can your debt capacity support, and what’s the best timeline for each phase?
