HLTH5193 Financial and Economic Management For Health
Task:
Part 1 - Capital Investment Decisions
1. Evaluate the relative merits of these machines using:
a) The actual (or nominal) cash flow
b) The payback period (PP)
c) Net present value (NPV)
d) Internal rate of return (IRR)
2. Which machine is the better investment? Explain your answer and your preferred method of evaluating the investment merits of these machines.
Part 2 - Financial Statements and Analysis
1. Compare the ‘financial summary’ (pages 18-19) to the ‘Financial Statements’ (start at page 49) reported in the Barwon Health Group’s 2018-19 Annual Report. Which set of information did you find most useful and why?
2. Using the 2018-19 annual report compare the 2018 and 2019 comprehensive results for the parent entity reported in the Comprehensive Operating Statement for the financial year ended 30 June 2019 (page 49). Please ensure your comments are brief, concise, and to the point. ( Hint: Vertical and Horizontal analysis may be helpful)
What other information would be useful in providing context for the financial outcomes? Is this information available in the annual report?
3. Construct a graph to show the following trends (for Revenue, Expenses and Patient WEISS Activity) from the Barwon Health Annual Reports2013-14 to 2018-19: (Note you will need to complete the following tables for Revenue, Expenses and WEISS Activity). Interpret the Graph
4.Create a new graph incorporating nominal expenses, discounted expenses and total WEIS patient activity for each year. (Hint: a single graph, use both the primary and secondary y axes.)
• Why discount the expenses?
• Which index did you choose and why?
• Does discounting the expenditure alter your interpretation of the past expenditure and activity (compared to question 3)?
6. What other performance indicators (e.g. KPIs – page 42-44, 2018-19 Annual Report) may be useful to measure? Why?
