Time value of money | Healthcare Financial Management and Decision Making |


The body of the resultant paper should be 5–  pages and include at least 5 relevant academic or professional references published in the past 5 years.

Assignment Details

Assignment Description

You are the chief financial officer (CFO) at a community based hospital (North Dallas Central Health) . One of the comments that has come back from patient surveys is the need for a commercial 24-hour pharmacy within the hospital. In this way, patients or their families will be able to fill prescriptions and begin taking ordered medication right away instead of waiting until the following day. The chief executive officer (CEO) wants you to create a proposal for the first 3 months of operation utilizing time value of money tools for the development of this new revenue-generating department. The following points must be covered in your proposal:

  • Include      and discuss the need for working capital to include 2 months of startup      drug inventory, vendor financing arrangements, personnel costs including salaries and benefits, renovations, disposable supplies, and cost of      equipment
  • Provide 2 viable options to measure the rate of return to optimize financial  performance of the department based on time value principles with      rationale and justification. 
  • Include a profitability analysis for 3 years.
  • Includeba schedule of assumptions for your proposal. What questions might the board ask regarding feasibility of this proposal?
  • How      might current changes in federal, state, and local policies influence decisions to be made?
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