Faith and Learning

In the Parable of the Talents which begins in Matthew 25, Jesus likens the kingdom of heaven to a lord of great financial substance who was going away and he put his servants in charge of his goods, which he refers to as “talents.” The Lord was drawing an analogy of what He Who is Lord of all has given us to work with until His return and He cites three recipients to typify various possible responses. One way to view this parable is to examine the type of financial risk each of the three servants was willing to take. Each received a sum directly relevant to his own ability. The one who received five traded and made five more; the one with two also doubled his; but the one with only one buried his to make sure he didn’t lose it. The two who took the risk and put their talents to work in the marketplace were rewarded handsomely for their faithfulness, but the one who took the “sure” way so as not to lose not only lost it, but was severely reprimanded and put out.

Those who took risks didn’t just stick their necks out, but had regard for the talents their lord had invested in them and they followed his example and invested them wisely, as well, for they also had respect for the lord. Enemies and distracters surely confronted them, but they persevered in the plan their lord had entrusted to them. Nehemiah had great distracters, one of whom was a man named Sanballat.

But it so happened, when Sanballat heard that we were rebuilding the wall, that he was furious and very indignant, and mocked the Jews. 2 And he spoke before his brethren and the army of Samaria, and said, “What are these feeble Jews doing? Will they fortify themselves? Will they offer sacrifices? Will they complete it in a day? Will they revive the stones from the heaps of rubbish—stones that are burned?” Nehemiah 4:1-2

The Maxwell Leadership Bible says “Nehemiah had to contend with the same kind of pest that plagues most true leaders today – distracters who torment and do everything possible to interfere in the work of the kingdom.” Then, Maxwell wrote when Sanballat’s first effort to stop the work by ridicule failed, he changed his game plan and targeted the wall-builders with tactics like fear, entrapment, and political maneuvering. He suggested, “Expect distracters. Don’t give them the time of day. Trust God to protect you and your reputation. Keep your hands to the plow and don’t look back.” That’s what Nehemiah did with the talents God gave him. He began with God in every detail and continued with God in every detail. Nehemiah told his team:

“The work is great and extensive, and we are separated far from one another on the wall. Wherever you hear the sound of the trumpet, rally to us there. Our God will fight for us.”

Nehemiah 4:9-10

Dear Lord, it is exciting to know that You not only want us to take risks, but that You also expect and command that we do so. Of course, not foolishly sticking our necks out without the wherewithal to accomplish our goals, but prayerfully stepping out in faith with plans and provisions to succeed. In Jesus’ name, Amen!

Food for Thought from Jeremiah 15:13

Your wealth and your treasures I will give as plunder without price, Because of all your sins, Throughout your territories.

Workshop Four Objectives

After completing Workshop Four, you should be able to:

1. Review aspects of the capital budgeting process including the use of project classifications and post-audits.

2. Discuss the uniqueness that occurs in capital budgeting for health services.

3. Explain key elements in the cash flow estimation, breakeven analysis, and profitability analysis.

4. Demonstrate a working knowledge of the capital budgeting process.

5. Summarize the types of risks related to capital budgeting decisions and how it is incorporated into the budgeting process.

6. Discuss techniques used in a project risk assessment.

7. Conduct a project risk assessment.

8. Discuss several types of real options and their impact on a project’s value.

Assignments

Activity 4.1: Read and Review

Gapenski, L. (2010). Understanding Healthcare Financial Management. (6th ed.). Chicago, IL: Health Administration Press.

1. Read the following in the Understanding Healthcare Financial Management:

0. Chapter 11 – The Basics of Capital Budgeting

0. Chapter 12 – Project Risk Analysis

0. Chapter 16 – Business Valuation, Mergers, and Acquisitions

Activity 4.2: Submission – Chapter Problems (25 points)

Chapter problem assignments allow you to demonstrate your understanding of how to formulate and solve various types of financial management problems used in the decision making process.

Each assigned chapter problem is worth five points and requires you to present your solutions using Microsoft Excel.

1. Complete the following problems located on the text book’s companion web site http://www.ache.org/pubs/hap_companion/book.cfm?pc=WWW1-2164: Note: You may want to save the Excel Spreadsheet from the website to your desktop before you start to work on the problems.

a. Chapter 11

i. Explore the Spreadsheet Model

ii. Solve End-of-Chapter Problems 1 and 2

b. Chapter 12

i. Explore the Spreadsheet Model

ii. Solve End-of-Chapter Problems 1 and 2

c. Chapter 16

i. Explore the Spreadsheet Model

ii. Solve End-of-Chapter Problem 1

2. Save your work in the website Excel document. Title your saved document WS4 A2 along with your name.

3. Submit the assignment via the WS4 Chapter Problems – Submit Assignments in the Workshop Four folder by the end of the workshop.

Reminder: If you need assistance in solving any of this Workshop’s problems, you may post your questions in the Chapter Problems Help discussion forum under the Workshop Four thread. You and your classmates can discuss possible solutions. Your instructor will review your comments and help to guide you in your solutions. This forum is an opportunity for you to collaborate, as a class, in solving health care problems.