Omega Health Foundation

Omega Health Foundation is a multifaceted business with two hospitals, Omega and Able Memorial, along with a number of related medical-service providers. Omega Medical Management, Inc. (OMMI) is the one entity of the foundation that is not a nonprofit organization, being a wholly-owned taxable subsidiary that has an assortment of business ventures, including the operation of family medicine centers where physicians are directly employed (Cleverly & Cameron, 2007).

There are many principles of finance. One principle, the principle of self-interested behavior, is centered on the notion that people’s actions are based on what is going to benefit them the most financially; and these actions require forgoing other possible actions that can be taken. The principle of two-sided transactions consists of every financial transaction having at least two sides, and that at least one party is acting in his/her best interest while gaining only at the expense of another. The time value of money principle is based on the value of money changing depending on the period in time and interest opportunities. While many other finance principles exist, these are the main ones that apply to Omega Health Foundation. Through their various business entities, they seek different routes to reach a common end result of what will be the most financially advantageous to themselves, and do so with their relationships with their patients, suppliers, and insurance providers/payers. Among other things, Omega Health Foundation uses the time value of money principle with its short and long term debt obligations. By looking at the financial statements for Omega Health Foundation, the financial position of the organization as a whole can be determined. A better picture as to where money is coming in and where it is being spent will be provided by the numbers in the company’s financial statements.

By analyzing different accounts of the organization, the income statement and statement of...