Healthcare Finance
Investigate the financial condition of a health services organization (HSO) of your choosing. In preparation for the Week 3 Assignment, you are expected to submit a Microsoft Word document explicitly addressing the following:
Utilizing the Strayer Library or other credible sources, you are to identify an HSO. Once identified, in a paragraph, share the name of the organization and provide a high-level overview of what kind of organization it is (e.g., home health, hospice, tertiary care facility, long-term care, subacute care, pharmaceutical, biotechnology, etc.) and the segments of the population that it supports.
You will want to be sure there is plenty of information available about the organization, particularly financial information. This means you'll likely need to choose a large organization that is required to make financials public.
One of the best ways to understand a company's financial health is to review its financial statements, including the balance sheet, income statement, and cash flow statement. These statements provide information about the company's assets, liabilities, revenues, expenses, and cash flow. You can typically find these statements in a company's annual report if non-profit.
For publicly traded HSOs, regulatory filings with the Securities and Exchange Commission (SEC) can provide additional information about the company's financial performance, management, and risks. These filings include the annual report, 10-K, 10-Q, and proxy statement
To gain a better understanding of the financial condition of your chosen health services organization, its budget preparation process, and fiscal planning strategies, you will develop five questions that you will answer as part of your investigation. Ideally, these would be questions you would ask a management official responsible for the financial planning of the organization. It is important that you provide a brief explanation for why you chose to include each of the 5 questions.
Think about questions that will give you greater insight into what the company looks for when preparing their annual budget, their fiscal planning strategies, and how they monitor their financial condition throughout the year and make necessary adjustments.
Optional: You may also choose to use these questions to interview a financial manager within a healthcare organization. The interview would then be the source of your information instead of the research.
Five Research Questions:
- Budget Preparation Process: How does Johnson & Johnson develop its annual budget, and what factors are considered when allocating resources to different business segments?
- Rationale: Understanding the budget preparation process can provide insights into the company's priorities and strategic direction.
- Fiscal Planning Strategies: What are Johnson & Johnson's key fiscal planning strategies for managing risk, ensuring financial sustainability, and optimizing capital allocation?
- Rationale: Examining the company's fiscal planning strategies can help assess its financial health and resilience.
- Financial Monitoring and Adjustments: How does Johnson & Johnson monitor its financial performance throughout the year, and what corrective actions are taken when necessary to address financial challenges?
- Rationale: Understanding the company's financial monitoring and adjustment processes can provide insights into its ability to adapt to changing market conditions.
- Impact of COVID-19: How has the COVID-19 pandemic affected Johnson & Johnson's financial performance, and what strategies has the company implemented to mitigate the impact?
- Rationale: The pandemic has significantly impacted the healthcare industry, and examining Johnson & Johnson's response can provide valuable lessons for other organizations.
- Mergers and Acquisitions: What is Johnson & Johnson's approach to mergers and acquisitions, and how have these transactions impacted the company's financial performance and strategic direction?
- Rationale: Understanding the company's M&A strategy can provide insights into its growth plans and risk management approach.
By answering these questions, I will be able to gain a comprehensive understanding of Johnson & Johnson's financial condition, budget preparation process, and fiscal planning strategies.
Organization Overview: Johnson & Johnson is a multinational healthcare conglomerate that operates in three primary segments: Consumer Health, Pharmaceuticals, and Medical Devices. It provides a wide range of healthcare products and services, including over-the-counter medications, prescription drugs, surgical equipment, and contact lenses. The company serves a diverse population, ranging from individuals to healthcare professionals and institutions.
Financial Information: As a publicly traded company, Johnson & Johnson is required to file financial statements with the Securities and Exchange Commission (SEC). These statements, including the balance sheet, income statement, and cash flow statement, can be found in the company's annual report (Form 10-K).