HLTH5193 - Health - Aged Care - Financial Statement Analysis - Management Assessment Answer

Assessment Task:

HLTH5193 - Health -  Aged Care - Financial Statement Analysis - Management Assessment Answer 

Part 1 - Health Care Funding Models
1. Describe activity based funding as it is applied in the Australian health sector.
2. What is the role of the Independent Hospital Pricing Authority in activity base funding?
3. Is it reasonable to assume that the (average) National Efficiency Price should apply equally to all states within Australia? Outline the assumptions which support your answer.
4. Casemix funding relies upon the average length of stay. Describe the problems of using the average length of stay for funding purposes?

Part 2 - Financial Statements and Analysis  HLTH5193
To access the Barwon Health Annual Reports, please refer to attachments to Assignment 2 on LO. Use the Barwon Health Annual Reports to answer the following questions:
1. Compare the financial summary (page 12) to the financial statements (start at page 35) reported in the Barwon Health Group’s 2017-18 Annual Report. Which set of information did you find most useful and why?
2. Using the 2017-18 annual report compare the 2018 and 2017 comprehensive results for the parent entity reported in the Comprehensive Operating Statement for the financial year ended.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 from 2012-13 to 2017-18:
1. Revenue from operating activities
2. Expenses (Employee Benefits + Non-Salary Labour Costs + Supplies and Consumables + Other Expenses from Continuing Operations)
3. Total WEISS (Weighted Equivalent Inlier Separations) for Public and Private patients only.

HLTH5193

5. Create a new graph incorporating nominal expenses, discounted expenses and total WEIS 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.?

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