Finance Discussion

Mission verse Margin Reflection Exercise – Family

The Smith family lives in Scranton, PA. Mr. Smith work in a factory producing widgets that are used and bought by automobile manufacturing. His factory job pays an annual salary of $40,000 per year, with overtime when available, he makes up to an additional $10,000 in bonus. The mother is a stay at home mother raising four children, ages of 6 months, 2 years, 5 years, and 7 years of age. (Note this is a family of 6)

Mr. Smith was recently laid off. Because of the severance that was paid totaling $20,000 and the salary already received throughout the year, the Smiths currently do not qualify for Medical Assistance in the current year. The children have been able to receive the CHIP program.

The ABC cancer foundation has been engaging in a mass breast cancer awareness campaign indicating the need for women to get checks, risks, and benefits. As part of the project, the ABC cancer foundation has been offering free breast cancer (mammograms) for women with limited or no insurance. Mrs. Smith decides to participate in the program. As a result of the exam, a tumor is found. Labs were taken and the tumor came back malignant.

Mission verse Margin Reflection Exercise Hospital

XYZ Hospital is a non-profit hospital in the region. It is only hospital in the region. The closest hospital to XYZ is 50 miles away. Over the past five years, XYZ hospital has been experiencing significant declines in cash flow, layoffs, and operating deficiencies. Days cash on hand is at 5 days. The industry average is 85 days cash on hand. The hospital is in jeopardy of going bankrupt.

The Smith family presented in the emergency room with the lab results indicating a malignant tumor. XYZ hospital staff knows that if a surgical procedure was scheduled, additional staff, medical supplies, and resources would be needed.

What does the hospital administration do? In your reflection, place yourself in both the family role and also as the CFO. (Reference the Ignatian and Jesuit articles in the resource section as well as you own values and perspective on hospital survival. Also research charity care policy changes that have occurred under the existing Affordable Care Act regarding Medical Assistance Expansion and Federal Poverty Limits for determining charity care and sliding fee schedules). What implications to the community, the family, the hospital, etc.?