Funding in singaporean health system Essay Example | Topics and Well Written Essays - 1000 words

Funding in singaporean health system - Essay Example The funding also enables competition between the different private health care facilities. The funding also encourages individuals to choose between the public and private health care facilities. Singapore uses the 3M health care financing and services provision. The first 'M' is the Medisave introduced in 1984, the second 'M' is the Medishield introduced in 1990 and the third 'M' is the Medifund introduced in 1963. These 3M form the centerpiece of Singapore health care financing. The 3M medical strategy was designed to curb the reliance of the public on fee for service, third party reimbursement. New medical schemes have been added to the 3M, these include the Eldercare and Elderfund. The Singapore government offers subsidies to public health, outpatient services, hospital services and preventive care. Classes B and C are highly subsidized accounting for the higher costs of running private hospitals. This is practiced at the private sector. It is done individually or through an employer. It is popular among professionals and companies. It is practiced in the private sector. With this type of funding, the companies control the health care expenditure. The system is not used at a national level in Singapore. Widely practiced in Singapore's private sector. ... Fee for service Widely practiced in Singapore's private sector. It is practiced at a family medicine and specialist level. This form of financing for the private sector is growing rapidly in Singapore. It is based on free to choose basis. It is personal and very efficient. However it cannot serve the Singapore entire population as it is expensive. The sector progress as the economy grows (Toh, 2008). Cost containment In the Singapore method of health care financing the health care cost do not pose any problem so long as the rising national income is matched with the health care costs. This means that as the GDP increases, the health care costs should also plummet. This however is problematic due to the fact that the health care cost might increase faster than the GDP. As hospitalization cost increase the cost of the premiums are bound to increase. In the 3M system, all the money spent on the health care is directly the money earned by the health facilities. This system makes the health care providers lack any incentive to contain costs. The system thus limits health care providers from practicing entrepreneur skills. The 3M scheme has resulted in the cutting back of the government spending on healthcare but not to the private spending. Government promotion to the private sector Singapore is striving towards becoming a regional medical hub. This initiative is funded by the government and aims at promoting the private health care sector. The government has spent millions of dollars in attracting foreign based biotechnology and pharmacetucal companies. Some multinational drug companies operating in Singapore include Merck, Sharp & Dohme, Aventis, GlaxoSmithKline, Schering-plough and Pfizer. (Taylor & Blair,

Evaluation of Corporate Performance Research Paper

Evaluation of Corporate Performance - Research Paper Example Its Server and Tools division offers server software, training to developers, cloud-based services. Its Business division offers Microsoft Office and related products. The company markets its products and services across most part of the world. Income Statements (all figures in millions) Year ended June 30, 2011 2012 2013 2014 (projected) Revenue $ 69,943 73,723 77,849 85,634 Cost of Revenue $ 15,577 17,530 20,249 22,274 Gross Profit $ 54,366 56,193 57,600 63,360 Total operating expense $ 27,205 34,430 30,836 33,920 Income before income tax $ 28,071 22,267 27,052 29,940 Provision for income tax $ 4,921 5,289 5,189 5,689 Net income $ 23,150 16,978 21,863 24,251 Figures for the year ended 2014 has been arrived at by projecting 10% growth on revenues and cost of revenues. Income tax provision has been made in the same percentage as made in the current year to arrive at the net income after tax. Ratio Analysis Liquidity Ratios Liquidity of the company can be denoted by several kinds such as current ratio, quick ratio, cash ratio, and cash conversion cycle. a. Current Ratio is given as Current Assets/Current Liabilities For the year ended 2013, Microsoft’s current Ratio = 101,466/37,417 = 2.71 b. Quick Ratio This is also known as the acid-test ratio. This takes into account the most liquid current assets to cover current liabilities. Inventory and less liquid current assets that cannot be converted to cash quickly are eliminated while calculating this ratio. This informs more liquid status of the company. Quick Ratio = (Cash & Equivalents + Accounts Receivable + Short-term Investments)/ Current Liabilities = (3804 + 17,486+73,218)/37,417 = 2.52 Financial Leverage c. The debt-equity ratio is one of the popular financial leverage ratios that provides information regarding the company's leverage state. This is given as = total liability/shareholder's equity = 63,487/78,944 = 0.8 This indicates that for every single dollar of share holder’s equity, there i s 0.8 dollar of debt. d. Debt Ratio Debt ratio is defined as total liabilities/total assets For Microsoft, it is calculated as 63,487/142,431= 0.45 In other words, 45% of the assets of Microsoft have been created from debt funds. Asset Management The return on assets employed in the company will provide information about how assets are used to generate return for shareholders. e. Return on Total Assets It is defined as Net Profit/ total assets employed = 21,863/142,431 =15.34% However, to understand how efficiently current assets are managed in enhancing shareholder’s wealth, it would be appropriate to find return on current assets. f. Return on Current Assets It can be given as net profit/current assets = 21,863/101,466 = 21.55% Profitability There are several measures of profitability and in this paper we calculate net profit margin and profitability against shareholder’s equity. g. Net Profit Margin is given as: Net profit/ revenue = 21,863/77,849 = 28% h. Profitabi lity on shareholders’ fund It can be given as net profit/ total equity = 21,863/78,944 = 27.7% Market Value The market value of the firm can be given by its market capitalization. i. Market Capitalization of Microsoft = No. of shares ? price/share = 8,328 ? 35.52 = $295.8 Billions j. Market Multiples (P/E) It will be interesting to understand P/E ratio in details. It is important to note that the closing price of any stock keeps fluctuating on daily