When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at….
Keeping Costs Under Control
With changes in reimbursement and revenue, health care managers are often urged to control or reduce costs while still providing high quality care for patients. Though your Ittleson text uses examples related to an applesauce company, the principles utilized are also relevant to health care settings. The risks and rewards resulting from financial decisions could mean the different between life and death for patients. Does the health care provider have the goods and services to take care of those that come seeking care?
To prepare for this Discussion, complete the readings in your Learning Resources.
Post a comprehensive response to the following:
Consider the relationship of costs to changes in volume and profitability as described in your Learning Resources. Provide two explanations for the current emphasis on cost control and cost reduction in health care. Include at least one outside resource from a recent (within the last 5 years) journal article to support your statements. Include information about how risk and uncertainty should be factored into cost control decisions in health care.
Be sure to support your work with specific citations from this week’s Learning Resources and/or additional scholarly sources as appropriate. Your citations must be in APA format.
200 to 250 words