Explains the importance of making a good case for expanding healthcare providers’ methods of calculating break-even analysis.

Evaluating financial statements and using financial analysis methods is a critical part of the decision to make capital investments. The goal of capital management is to acquire and maintain sufficient working capital and assets. This helps an organization meet operating and expense obligations, while also keeping a sufficient cash flow. It is also a way to confirm that capital purchases and agreements are made with ethical standards. This part of your project will require you to complete two (2) article reviews and report on your findings. Then, you will apply your findings to how capital decisions can be made in your specific case; as well as comparing your viewpoint to the authors’ and recent ethical scandal. Keep in mind that you will use your article analysis to either support or disprove the purchase of an information system in the final portion of your project.

Submit a minimum 3-page report that:

• Discusses why is it more difficult for healthcare companies to get expansion financing in the today’s economic climate and financial issues with expansions.
• Describes why healthcare companies need to look beyond their banks to secure financing.
• Explains the importance of making a good case for expanding healthcare providers’ methods of calculating break-even analysis.
• Discuss non-financial factors do the authors believe need to be included in break-even analysis?
• Explain how current issues, such as the Affordable Care Act, affect break-even analysis.
• Summarizes the authors’ viewpoints and apply the concepts to your case. Also include a summary of your viewpoint in comparison to the authors’. Be sure to specifically address the methods that influence capital investments and decision-making; and explore methods of analyzing capital investments (Payback, Net Present Value, and Internal Rate of Return). This report will serve as your Capital Management section of your project.
• Analyze the key points of the Enron Scandal and specifically address how professionalism and ethics influence decision-making. How do unethical standards impact an organization’s performance and capital investments? Reference the concepts of embezzlement and losses. Explain how you maintain ethical standards in relation to Code of Ethics.
• Include an APA formatted reference page to include at least three (3) academic sources, such as a book or an academic scholarly journal, to support your topic. You should reference your academic sources by including at least three (3) in-text citations. You can use the articles outlined in the instructions, as well as information found on the Enron Scandal.

Article Review #1
Read the article Expanding Credit Lines in Order to Expand which discusses the challenges related to expansion financing.

• Discuss why is it more difficult for healthcare companies to get expansion financing in the current economic situation?
• Explain the 2 major issues with the Caribbean expansion the turnaround company found and why do you think they were brought up?
• Describe why healthcare companies need to look beyond their banks to secure financing?

Article Review #2
Read the article The New Break-Even Analysis which looks at expanding how healthcare providers look at break-even analysis and includes some non-financial considerations.

• Do you think the authors make a good case for expanding healthcare providers’ methods of calculating break-even analysis? Why or Why Not?
• Discuss non-financial factors do the authors believe need to be included in break-even analysis?
• Explain how the Affordable Care Act affect break-even analysis?

Ethical Scandal
The ‘Enron Scandal’ involving acts of embezzlement is one of the most well-known financial, ethic scandals in modern day history. Perform a web search of the Enron Corporation Scandal to find more information.

Use the following websites on ethics to help support your course of action in upholding ethical standards.

• Five Top Ethical Issues in Healthcare
• American College of Healthcare Executives (ACHE) Code of Ethics

ARTICLES ARE ATTACHED FOR REVIEW