This would ensure that the activities of the company remain profitable both in the long run and in the short run. The company recorded a decrease in revenue in 2011. Previously, the company has made several acquisitions and dispositions. This could have been one of the contributing factors to this loss among other factors. This paper investigates the methods of costing used in the company and explores the implication of employing differential costing in the company. The company employs different techniques in cost management. The acquisition of tax information is done through periodical reviews of company assets. The company analyses its data and prepares quarterly reports every year. As a way of managing its operational costs, the company has sold several of its branches (U.S. Securities and Exchange Commission, n.d). New assets have also been acquired as a way of expanding business and risk diversification. This approach is useful since the assets bought have high chances of appreciating in value, leading to a stable business during a long period of time. The assets base also provides more collateral required by financial institutions before they can give out loans. Gentiva’s ability to acquire loans for expanding its activities has, therefore, been enhanced. The change brought about by the new acquisitions and dispositions implies a change in the management structure. ...
Aspects such as practical difficulties while introducing the system and the main structures that should govern the installation of the new system require critical analysis. Practical difficulties encountered include lack of support from the top management or staff, high initial costs, lack of support from other levels within the organization or lack of qualified staff. Other main considerations entail the type of the product, organizational structure, management’s objective, and simplicity of the new system. The adoption of differential costing would greatly help the company. Differential costing helps evaluate the difference in total costs and expected revenue. This information is necessary in choosing where to invest or not to invest. In addition, it will help evaluate the incremental benefits resulting from an acquisition or a disposition. In a situation when the company requires closing down a new firm, the company would be able to weigh the detrimental costs likely to occur as a result of the closure. Gentiva is on the verge of making several decisions to remain relevant and stable in the current economic demands. Since differential costs involve the assessment of costs and revenues arising as a result of taking a given alternative, the company needs to employ the method to reach the best decisions. In turn, the company will be able to cope with the proposed law to cut health services and hospice care. The effects of the health care reform on the providers of health services are clearly evident. The reform requires that costs of health services be reduced by at least 3.5% every year. This implies reduced returns for services offered by Medicare companies. Due to the health services reform, Gentiva is on the move to diversify its
Cite this document
(“Gentiva Health Services Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/73306-gentiva-health-services
(Gentiva Health Services Essay Example | Topics and Well Written Essays - 750 Words)
“Gentiva Health Services Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.net/finance-accounting/73306-gentiva-health-services.
Cited: 0 times
Gentiva Health Services assignment of submission Introduction It is the quest of every company to cut down expenses and raise the level of revenue accruing from daily activities. Gentiva Health Services is not an exception to this rule…
However, assimilating system that guarantees the highest possible value for patients may lead managers and leaders to make a difference (Mullins, 2007). Thus, to lead employees for a common goal, managers should have a clear understanding of behaviors of staffs and its role within the organization, meaning of perception so that behavior would be interpreted with sound judgment, and the essence of groupings and their role in decision making.
Gentiva Health services group is not an exception to this rule. Based on revenue, it is the largest national provider of hospice care and home health services in America (Gentiva Health Services, n.d). These services are provided across 41 states. Owing to its complex nature of management, the company requires proper accounting practices coupled with efficient financial performance evaluation.
According to Nicholas & Reenen (2010), organizational management practices are the main reason for the differences in the productivity of organizations. Nonetheless, all organizations must have their own distinct management practices. This is because organizations are different in nature, and have varying goals and objectives (Basford & Slevin, 2003).
These include national guidelines, a system of clinical governance, imposing the importance of delivering high-quality care, and a national inspection system across areas or disciplines. Although there is evidence that the performance of the National Health Services have improved, it is not beyond criticism that there are still glaring deficiencies in services and people's access to these services.
According to the research findings, NHS has long been funded by the money raised through taxation. But the recent budget cuts announced by the UK government make it necessary for the system to make alternative arrangements. In view of little or no cash increase in the forthcoming years the system must keep itself ready to face the challenge.
List the observable aspects of a culture and identify how you have either experienced them or witnessed them in organisations you have been a part of in recent years.
Organisational culture is indeed one of the most commonly used concepts in
a Health Services; the latter then became one of the largest in the nation and ranked among the ten largest after acquiring The Healthfield Group, Inc. in 2006 (EDGAR).
Gentiva Health Services provides hospice services throughout 420 locations and at least forty-one states.
Economic issues are loss in business, power crisis, declining export, war on terrorism, falling stock market and lack of tourism. Causes of some of the socio-economic issues mentioned above are different (Adler & Newman, 2002).
5 pages (1250 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic Gentiva Health Services for FREE!