Health Finance

*Health Finance (HCM565)

*Homework: critical thickening

*need the pelgrism below 18%

* Please read below  articles below :

• Chapter 5 in Understanding Healthcare Financial Management
• Merlo, G., Page, K., Ratcliffe, J., Halton, K., & Graves, N. (2015). Bridging  the gap: Exploring the barriers to using economic evidence in  healthcare decision making and strategies for improving uptake. Applied Health Economics and Health Policy, 13(3), 303-309.
• 1. Financial Risk and Decision-Making
  In  business, there is some required level of risk when making decisions.  The field of healthcare is no exception. The higher the potential for  risk, the higher the return must be to make the risk worthwhile.  Although in healthcare, risk can be both health related as well as  financially related. In this section, we will focus on the financial  component of risk.
  Being  a successful healthcare manager requires knowing the risk of the  financial decision and understanding the required return on the  investment. Knowing the required return can help minimize the  consequences of a poor decision.One of the key principles behind risk to understand what is known as the investment horizon.
  Click through the tabs below to learn more about this principle.
• Merriam-Webster  (2017) defined risk as “a possibility of loss or injury.” By sheer  definition, risk is everywhere. The most frequently used tool associated  with financial decision making is the best, worst, and most likely  analysis (Montori, 2017). When relating this model to financial risk,  it’s necessary to calculate three different scenarios:
  1. Best case
  2. Worst case
  3. Most likely
  4. For  a simplified analysis, imagine that you have $1,000 available to invest  and decide to invest it in a biotechnology company. The cardflip  activity below explores the three scenarios for this example.
• ——————————————————————————————————————————————————————————–ASSIGNMENT:CRITICAL THICKENING Financial Risk and Required Return
•  After  you read the material for the module, conduct some additional research  on risk aversion within healthcare. In this research-based paper,  analyze what the literature presents as an acceptable level of risk  within the healthcare organization.
  • Application of the Capital Asset Pricing Model.
  • Analysis of necessary levels of risk needed in order to maintain a level of profitability.
  • Analysis of necessary levels of risk vs. excessive risk.
  • Analysis of cost/benefit levels of risk to patients vs. production of large returns to the organization.
  • Your final submission will be 2-3 pages in length excluding the cover and reference pages. Be sure to include:
  • Analysis of the acceptable level of risk.
  • Summary of findings.
  • Your paper should meet the following structural requirements:
  • The paper should be 2-3 pages in length, not including the cover sheet and reference page.
  • The paper should be formatted according to APA and Saudi Electronic University writing standards.
  • Provide support for your financial statements with in-text citations from a minimum of four scholarly articles.
  • Two of these sources may be from the class readings, textbook, or lectures, but two must be external.
  • The Saudi Digital Library is a good place to find these references.