this discussions cover the “C” in the POLC model. Although control can be realized through policy, procedures, codes of conduct, and ethics, the control of finances is essential to sustainability of a business.

Read the scenario and respond to the discussion question.

Scenario: Your best friend works for the In-Home Health Provider Company (IHHPC) in Palm Beach County, Florida. Your friend comes to you and explains that the IHHPC wants to expand the next year to Broward County and Dade County. Your friend explains the company is dealing with a cash flow problem, and if it is not figured out over the next 6 months, the IHHPC will not meet the asset requirement for the expansion loan. IHHPC revenue:

  • 80% private pay patients
  • 10% health insurance
  • 10% long-term-care insurance policy

Process at IHHPC: Your friend explains this is how the IHHPC works. Say a patient called in and requested a nurse for 8 hours a day, 7 days a week, starting the next day. The company would send the nurse the next day, then bill the patient on a weekly cycle. The IHHPC would mail a statement to the patient at the end of the first week of service. By the time the patient would get around to writing a check and mailing it back in to the IHHPC, sometimes the company would not receive payment for 6 to 8 weeks. The company would be paying the nurse weekly although not receiving payment for services yet.

  • What would you advise your friend and why?

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