Question

On the morning of October 22, 2020, the Texas Department of Health (TDH) in Austin received a telephone call from a student at Texas Southern University. The student reported that he and his roommate, a fraternity brother, were suffering from nausea, vomiting, shortness of breath and diarrhea. Both had become ill during the night. The roommate had taken an over-the-counter medication with some relief of his symptoms. Neither the student nor his roommate had seen a physician or gone to the emergency room. The students believed their illness was due to going to a party at The Address. Both admitted they went to the venue without wearing a mask or practice social distancing. Neither student had medical insurance. After one collapsed, the ambulance was called to take both male students to the hospital in the Texas Medical Center.

Once there the students were stabilized. The director of the CO-VID 19 triage division (YOU) was asked to facilitate the delivery of care, but most importantly payment for the services. The hospital St Luke’s which accepted the two students also had opened a medical inpatient clinic to treat those affected by the pandemic.

Although the building is new; the department is still in need of equipment. Furthermore, the director is trying to work with the board of directors of the hospital to move forward on the most rational course of action considering the impact of the pandemic, the timeline and during of how long it may take to find a cure; the cost of care for each patient, etc.

The hospital fiscal year ended with residual earnings of $1.2 million dollars. Keeping in mind, this is a for-profit hospital and stockholders are concerned about the upcoming recession and loss of their investment. Currently, there are four options of treatment available, one requires an expensive, new, but not proven medical equipment to treat the patient’s respiratory system. More expert staff will be needed as well.

Dubious of the future, but as the healthcare administer and director of this new triage division, how would you approach the project, the debt, funding, capital requirements, and the use of the current new capital asset? How would you handle the debt and the value of this for-profit institution considering the risk and the pressure from stockholders?

Keep in mind to use not only planning (present & future) budgeting and funding from the text, but also risk, equity, return on investment, capital investment and decision information. Consider all chapters covered target population, direct and indirect cost, the difference between debt funding and equity funding. Consider when investing or funding the breakeven or payback. Think outside the box

Answer 1

covid triage devision is for profit institution and wants to facilitate the delivary of care to the persone who is suffering from covid and most importantly payment for the services.

sinces the covid triage devision is for profit institution it is important to earning from the persone who is suffering from covid. we should considered the following assept

• more expert staff will be needed.
• treatment requires an expensive,new,but not proven medical equipment to treat the patient's repiratory ststem
• stockholers are concerened about the earning from covid triage devision
• cost of care of each patient
• hou much time is required for treatment of paitien

CAPITAL REQURIAMENT

• since covid triage devision is new devision thus more capital is requried
• treatment requires an expensive,new,but not proven medical equipment to treat the patient's repiratory ststem thus more capital is requried
• more expert staff will be needed.is required more capital

USE OF CURRENT AND NEW CAPITAL ASSETS

• since hospital has a building that is used in covid rtiage devision
• treatment requires an expensive,new,but not proven medical equipment to treat the patient's repiratory ststem which is required to purchases

FUNDING

• sinces the treatment is not known, and timeline and duration of cure is not known,thus hospital should go with eqity funding becouse in case of loss dividend is not given to eqity shareholders