Healthcare Organizational Management Lesson 12 Discussion 1
Ratios are used for operational activity analysis of an organization. Operational analysis activity is control by evaluating input, process, or output variables. According to Longest, Jr and Darr (2014), financial ratio analysis calculates and evaluates various indices that measure HSO/HS risk exposure, activity, and profitability.
Read and complete Case Study 5: Financial Ratios. Answer the following questions:
General Hospital (GH) is a freestanding 60-bed nongovernmental, not-for-profit Health Services Organization (HSO), Review the income statement and balance sheet provided here.
Use the financial ratio formulas provided in Table 11.8 to calculate the values listed in the following table.
Answer the following questions:
1. What do you conclude when comparing the calculated values for GH with the benchmark values that are supplied by Standard & Poor's?
2. Consider if the hospital is profitable.
3. What measures should the hospital implement to improve their operational activity?