Gentiva Health Services assignment Essay Example | Topics and Well Written Essays - 750 words

Gentiva Health Services assignment - Essay Example The adoption of differential costing would greatly help the company. Differential costing helps evaluate the difference in total costs and expected revenue. This information is necessary in choosing where to invest or not to invest. In addition, it will help evaluate the incremental benefits resulting from an acquisition or a disposition. In a situation when the company requires closing down a new firm, the company would be able to weigh the detrimental costs likely to occur as a result of the closure. Gentiva is on the verge of making several decisions to remain relevant and stable in the current economic demands. Since differential costs involve the assessment of costs and revenues arising as a result of taking a given alternative, the company needs to employ the method to reach the best decisions. In turn, the company will be able to cope with the proposed law to cut health services and hospice care.The effects of the health care reform on the providers of health services are clea rly evident. The reform requires that costs of health services be reduced by at least 3.5% every year.   This implies reduced returns for services offered by Medicare companies. Due to the health services reform, Gentiva is on the move to diversify its operations. The company aims at capitalizing on the provision of Medicare services to the robust ageing American population. Chances are high that there will be several incidences of disease with the ageing population. Other likely effects include employment lay-offs.