Assignment 4: Merger Analysis Use the Internet to research two (2) publicly held health care organizations in your state (North Carolina) that you believe would benefit from a merger. Download and...

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Assignment 4: Merger Analysis Use the Internet to research two (2) publicly held health care organizations in your state (North Carolina) that you believe would benefit from a merger. Download and review each organization’s financial statements. Write a ten to twelve (10-12) page paper in which you: • Conduct basic financial statement and operating indicator analysis to assess the financial condition of the two (2) health care organizations you selected. • Analyze the organization’s debt, equity financing, and capital structure of the two (2) organizations. • Analyze the capital structure and cost of capital of the two (2) organizations. • Conduct a risk analysis regarding the merger of the two (2) organizations you have identified. • Analyze current receivables management of the two (2) organizations and make recommendations for how receivables management should be addressed post-merger. • Explain which financial ratios you used in your analysis and how they were derived in an appendix to your assignment. Provide at least four (4) qualified sources, e.g., peer-reviewed journals, professional organization Website, or health care provider Websites. Your assignment must follow these formatting requirements: • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: • Evaluate the financial statements and the financial position of health care institutions. • Apply fundamental financial management skills and knowledge to health care organizations. • Evaluate the financial statements and the financial position of health care institutions. • Develop a competence in making financial decisions using net present value, pertinent financial ratios, and break-even analysis. • Use technology and information resources to research issues in health financial management. • Write clearly and concisely about health financial management using proper writing mechanics. Points: 172 Assignment 4: Merger Analysis Criteria Unacceptable Below 70% F Fair 70-79% C Proficient 80-89% B Exemplary 90-100% A 1. Conduct basic financial statement and operating indicator analysis to assess the financial condition of the two (2) health care organizations you selected. Weight: 15% Did not submit or incompletely conducted basic financial statement and operating indicator analysis to assess the financial condition of the two (2) health care organizations you selected. Partially conducted basic financial statement and operating indicator analysis to assess the financial condition of the two (2) health care organizations you selected. Satisfactorily conducted basic financial statement and operating indicator analysis to assess the financial condition of the two (2) health care organizations you selected. Thoroughly conducted basic financial statement and operating indicator analysis to assess the financial condition of the two (2) health care organizations you selected. 2. Analyze the organization’s debt, equity financing, and capital structure of the two (2) organizations. Weight: 15% Did not submit or incompletely analyzed the organization’s debt, equity financing, and capital structure of the two (2) organizations. Partially analyzed the organization’s debt, equity financing, and capital structure of the two (2) organizations. Satisfactorily analyzed the organization’s debt, equity financing, and capital structure of the two (2) organizations. Thoroughly analyzed the organization’s debt, equity financing, and capital structure of the two (2) organizations. 3. Analyze the capital structure and cost of capital of the two (2) organizations. Weight: 15% Did not submit or incompletely analyzed the capital structure and cost of capital of the two (2) organizations. Partially analyzed the capital structure and cost of capital of the two (2) organizations. Satisfactorily analyzed the capital structure and cost of capital of the two (2) organizations. Thoroughly analyzed the capital structure and cost of capital of the two (2) organizations. 4. Conduct a risk analysis regarding the merger of the two (2) organizations you have identified. Weight: 15% Did not submit or incompletely conducted a risk analysis regarding the merger of the two (2) organizations you have identified. Partially conducted a risk analysis regarding the merger of the two (2) organizations you have identified. Satisfactorily conducted a risk analysis regarding the merger of the two (2) organizations you have identified. Thoroughly conducted a risk analysis regarding the merger of the two (2) organizations you have identified. 5. Analyze current receivables management of the two (2) organizations and make recommendations for how receivables management should be addressed post-merger. Weight:15% Did not submit or incompletely analyzed current receivables management of the two (2) organizations and did not submit or incompletely made recommendations for how receivables management should be addressed post-merger. Partially analyzed current receivables management of the two (2) organizations and partially made recommendations for how receivables management should be addressed post-merger. Satisfactorily analyzed current receivables management of the two (2) organizations and satisfactorily made recommendations for how receivables management should be addressed post-merger. Thoroughly analyzed current receivables management of the two (2) organizations and thoroughly made recommendations for how receivables management should be addressed post-merger. 6. Explain which financial ratios you used in your analysis and how they were derived in an appendix to your assignment. Weight: 10% Did not submit or incompletely explained which financial ratios you used in your analysis and how they were derived in an appendix to your assignment. Partially explained which financial ratios you used in your analysis and how they were derived in an appendix to your assignment. Satisfactorily explained which financial ratios you used in your analysis and how they were derived in an appendix to your assignment. Thoroughly explained which financial ratios you used in your analysis and how they were derived in an appendix to your assignment. 7. Four (4) references Weight: 5% No references provided Does not meet the required number of references; some or all references poor quality choices. Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices. 8. Clarity, writing mechanics, and formatting requirements Weight: 10% More than 6 errors present 5-6 errors present 3-4 errors present 0-2 errors present
Answered Same DayDec 22, 2021

Answer To: Assignment 4: Merger Analysis Use the Internet to research two (2) publicly held health care...

Robert answered on Dec 22 2021
110 Votes
RUNNING HEAD: MERGER ANALYSIS – CAROLINAS HEALTHCARE AND
NOVANT HEALTH 1
Merger Analysis: Carolinas Healthcare and Novant Health
MERGER ANALYSIS - CAROLINAS HEALTHCARE AND NOVANT HEALTH 2
Merger Analysis: Carolinas Healthcare and Novant Health
Introduction
Mergers and acquisitions can be defined as a corporate strategy that is followed by the
management of the company while
dealing with the growth by way of selling, buying,
combining or dividing either similar types of companies or different types for the purpose of
working together as a single enterprise. The term mergers and acquisitions are sometimes
interchanged, but there is a difference between the two. (Stahl, 2005) Acquisition refers to
the purchasing of one company by another company that is either financially or strategically
strong. Acquisition can be either hostile or friendly in nature that depends on the forceful
agreement or the mutual agreement between the companies.
The mergers and acquisition are carried out in order to reap the benefits, such as:
improvement in the utilization of capacity; enhancement in the sales force coverage; reducing
the managerial staff and thus the overall cost of operation. The company is able to attain the
economies of scale, new and advanced technologies, and reduction in the tax obligations on
the whole.
Merger and Acquisition of company
A successful merger is the one which provides benefits to both the companies that are
involved in the merger. It can be ascertained by the ability of the companies or the merger
team to establish as quickly as possible the productive relationship and thus attain
profitability. There are many success stories of the companies acquiring another and winning
over to success.
Company overview:
Carolinas HealthCare
Carolinas HealthCare System, is one of the leading health care organization in the
Southeast. It has more than 30 affiliated hospitals which have more than 190 physicians, it
MERGER ANALYSIS - CAROLINAS HEALTHCARE AND NOVANT HEALTH 3
serves more than 600 other care locations. The company has a strong focus on strong
commitment to serve the public as well as extensive reach of all the segments. The company
has a strong focus on doing different educational as well as research initiatives. The hospital
also provides medical home services. The organization has a strong focus on enhancing the
quality of the services.
Novantas Healthcare:
Novantas healthcare is one of the leading health care organization which provides
health care services, the organization, the organization has transformed to electronic health
records which has helped the organization to helped the patients and provide them top quality
work.
Basic Financial Analysis:
Financial analysis helps in providing clear view and picture of the performance of the
organization. This helps in analyzing the past as well as the present performance of the
organization. The financial analysis of the company is done with the help of different
financial ratios which has helped in analyzing the performance of the company.
Capital structure:
The total assets of Novant healthcare is $4481951, of which the total equity is
$1887290 and debt is $2594661, thus the total debt of the company is 57.89% and equity is
42.10%. The total assets of Carnolis healthcare is $6685123, of which 51% is debt and the
remaining is equity.
Within the health care system, health care financing (HCF) fulfils different functions:
Collecting revenues, pooling revenues (risks) and purchasing services. These three tasks can
be unified in one organisational entity or can be split up between different institutions.
HCF is important for several reasons: (i) Public and private financing may have different
effects on equity of financing, health care utilization and health status (ii) Different degrees
MERGER ANALYSIS - CAROLINAS HEALTHCARE AND NOVANT HEALTH 4
of risk pooling and risk reduction are associated with this dichotomy. While out-of-pocket
(OOP) payments do not include risk pooling at all and private health insurance only reduces
the health expenditure risks, public financing via taxes or income-based contributions also
includes some element of reducing the income risk. Hence, the risk spectrum covered by
public financing is broader compared to that of private financing. (iii) In a normative
perspective, specific forms of collecting (e.g. public insurance) are able to reduce market
failures in the coverage of health care risks. (iv) finally, there exists a link between the
financing structure and the efficiency in the provision of health care services.
Classifications of health care systems are delineated within the dimensions of
financing, service provision, and regulation. Who finances, provides, and regulates health
care services has a...
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