Financial assessment of organizations in the healthcare industry provides the foundation for stability and growth. Evaluating and understanding the internal and external factors affecting the operations and creating internal controls are essential to the financial health of any organization. Decision making for long-term and short-term planning is directly related to financial planning. Analyzing outside funding sources should be performed to determine any available funding to support the operating structure of the organization.

Creating, achieving and maintaining financial stability will provide the structure for any organization to withstand and survive economic pressures. Legislative restrictions should be incorporated during the creating and planning stages to remain in legal compliance with laws and mandates. Keeping updated on technology, practice trends and overall management is difficult; however, a solid financial plan incorporating factors for variances will build up healthcare organizations for longevity.

Developing a strategic financial plan with the anticipation of varying factors such as growth or economic turbulence is important in the management of the organization. Strategic planning from a financial aspect with good investment practices require methodical exertion and innovation methods for successful practices to be implemented. Planning with an emphasis on accountability and quality control provides measures to support the overall goal of the organization.

Healthcare Companies

Financial assessment on two publically traded healthcare providers will include UnitedHealth Group (UHG) and Health Net, Incorporated (HNI). Both companies are in the top 10 largest managed care organizations. Both organizations are able to raise capital by sales of securities with fair market value at any time the company deems appropriate. The market capitalization is calculated by the number of share outstanding times the price per each share. UHG is estimated at approximately $20.2 billion and HNI is a smaller organization estimated at $3.8 billion (Health Plans, 2008).

UHG declares a social responsibility to help people live healthier lives (UnitedHealth Group, 2009). The organization considers their mission and business goals to align together to impact health and communities in positive ways. The environment is also a concern and this company has an active awareness of conserving energy and natural resources.

HNI is active in empowering patients to be healthy, secure and comfortable (HealthNet, 2009). The organization prides itself on employing leaders with expertise and high skill-sets in situation decision making, trust and the ability to identify needs in team environment. Honor and respect for all aspects of customers, employees and investors is important to the corporate climate and culture.

Internal Factors

“Internal factors or environment of a business consists of the organizations resources available to accomplish its goals” (Smith, R., 2008). The internal environment comprises several groups affecting the financial components of an organization. The amount of time the company has been in business and the histories of the financial picture are a few. Management, production and marketing competencies affect the organization. The organizations choice of strategies will determine some aspects of how financially healthy the organization can expect to achieve and maintain.
The overall organizational structure and ongoing strategy are internal factors affecting the financial structure and wellbeing. Current operational practices are internal factors directly affecting the balance sheet, cash flow and financial debt obligations. Forecasting future capital needs and current physical assets should also be included in a financial assessment.