Prepare a 3–4 page executive-style accounting decision memo delivering a recommendation on whether or not a healthcare provider network should expand their technology-enabled care program. Collapse Al

Prepare a 3–4 page executive-style accounting decision memo delivering a recommendation on whether or not a healthcare provider network should expand their technology-enabled care program.

Collapse AllIntroduction

This assessment helps you demonstrate competencies related to accounting judgment, financial analysis, managerial decision making, and executive communication.

Overview

This assessment helps you practice MBA-level accounting judgment in a real organizational context. Using a tech-enabled healthcare case, you will analyze performance and financial position, assess earnings quality using cash-flow and working-capital signals, recommend audit-ready accounting treatments, and deliver a recommendation. You will then respond to a staged update without rewriting your original decision section.

ScenarioNovaSage Health and the SignalCare Platform

NovaSage Health is a healthcare provider network that partnered with a health-tech firm to launch SignalCare, a technology-enabled care program for high-risk patients with diabetes, heart failure, and COPD. SignalCare combines remote-monitoring devices, a patient-engagement app, predictive risk alerts, and subscription-based care-management contracts sold to employer plans and payer partners.

SignalCare is growing, and leadership wants to expand it system-wide. However, several accounting choices will materially affect reported earnings, asset values, cash-flow timing, and lender-facing ratios. NovaSage is also preparing for an external audit and negotiating a credit facility renewal. The lender has signaled increased focus on working-capital management and cash conversion, not just revenue growth.

Decision question to be answered in your memo:

• Should NovaSage expand SignalCare system-wide this year, or pause expansion until accounting treatments, internal controls, and profitability signals are stronger?

Your Role

You serve as the Controller at NovaSage Health and have been tasked with preparing an executive memo for the CFO and the Audit and Compliance Committee.

This role focuses on three responsibilities:

• Analyze the financial story behind the case, including performance, financial position, and earnings-quality.
• Recommend accounting treatments that are professional, consistent, and audit-ready.
• Deliver a recommendation that leadership can defend to auditors and lenders.

Instructions

For this assessment, you will prepare an executive-style accounting decision memo using the Case Packet [PDF] provided. You will submit the memo based on the original information, then review a staged update and submit an Update Addendum that responds to the new facts without rewriting the locked Decision and Rationale section. Your memo must include labeled exhibits that support your analysis.

AI may be used only after your draft is complete, and if AI is used you must include an AI verification log showing what you tested, what you accepted, what you rejected, and what you changed.

To meet these requirements, complete the following steps in order.

Step 1: Build the Exhibits First

• Use the Case Packet [PDF] to build the required exhibits. The memo should explain what the exhibits prove.

Step 2: Write Memo

• Write your recommendation and analysis using the Memo Requirements Guide [PDF].
• Important: Once you write the Decision and Rationale section in the memo, do not revise it after the staged update. Keep your original wording and respond to the new information only in the Update Addendum.

Step 3: Apply the Staged Update

• Read the staged update in the Case Packet [PDF] and write an Update Addendum.
• Important: Do not rewrite the memo. Respond in the addendum.

Step 4: Complete the AI Verification Log

• AI may be used only after you have a complete draft of the memo and your exhibits. If you use AI, include the AI verification log in the appendix.

Step 5: Yellowdig Discussion Post and Peer Response 

• After you complete the memo and before you submit your final document, create one discussion post in Yellowdig.
  • Your post should be 150 to 250 words and written in your own voice.
  • Your post must include one insight tied to Exhibit A or Exhibit B, one accounting treatment implication tied to Exhibit C, and one head-to-head comparison insight that supports your decision framework.
  • End your post with one question for classmates that invites evidence-based discussion.
• Next, reply to one classmate’s post in Yellowdig.
  • Your reply should be 75 to 125 words and should directly respond to what they shared while adding one additional insight or one follow up question grounded in evidence from the Case Packet [PDF], your exhibits, or the staged update.
• Screenshot Requirement:
  • Take one screenshot of your Yellowdig post and one screenshot of your reply. Insert both screenshots into your appendix as Exhibit G.

ePortfolio

You may choose to save your coursework to your ePortfolio as you complete iterations of your work for your final assessment. 

Submission Requirements

• Written communication: Written communication is free from errors that detract from the overall message. Communicate in an exemplary and professional manner through clear, concise, well-organized, and grammatically correct writing.
• Academic Integrity and Honesty: You must adhere to academic integrity and honesty policies and incorporate practices that support ethically sound work in your assessments. View Academic Integrity at Capella University: Some Guidelines and the AI Ethics Statement on the AI Skills Portal.
• Format: Submit one Word document with these parts in this order:
  • Memo.
  • Update Addendum.
  • Appendices with required exhibits and the AI verification log.
• Suggested Length:
  • Memo: 2 to 3 pages.
  • Update Addendum: up to 1 page.
  • Appendices: Focused and relevant.
• Citations: Include complete citations of your sources. Review Evidence and APA for more information on how to cite your sources. You can also use the Writing Center resources to help you with the writing process.
  • Cite all use of Artificial Intelligence (AI) in proper APA format, including generative AI (ChatGPT, CoPilot, Gemini, etc.) and tools such as Grammarly. Visit Citing Generative AI for help formatting your citations.
• ePortfolio
  • This portfolio work project demonstrates your workplace-ready financial analysis, decision support, and executive communication.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:

• Competency 1: Explain how accounting concepts and practices impact financial reporting.
  • Recommend accounting treatments including an evaluation of reporting impact.
• Competency 2: Apply principles of accounting to assess financial performance.
  • Analyze financial performance, position, and earnings quality.
  • Apply staged update analysis and AI verification process.
• Competency 3: Analyze accounting information to support business decisions.
  • Apply managerial accounting to evaluate SignalCare economics.
  • Develop a decision, supporting it with accounting-based evidence.
• Competency 4: Communicate financial information with multiple stakeholders.
  • Communicate analysis in a well-organized, executive ready memo format.

Faculty will assess your deliverable as a workplace recipient would and will provide feedback using the scoring guide. Prior to submission, review the scoring guide to ensure your work aligns with all grading criteria.