The Hospital's Financial Potential For 2014 And 2015

Profitability ratios are used to measure the overall efficiency of thebusiness, as well as management effectiveness. Examples of profitability ratios include the gross margin ratio and the net margin ratios.

The profitability ration in a financial analysis is the ability of the organization to generate a profit. This ratio looks at areas such as net income, revenue, gross profit, earnings before taxes and interest and operating profit to name a few. Profitability shows the bottom line numbers for a company and is the goal that most organizations strive for. Ratios examined were gross profit margin and net profit margins

We operate a small privately owned clinic so our extra budget requirements are less than that of some larger facilities. To change the current procedure and protocol for assessing risk, we have created a budget to learn more about how we can help prevent and handle our geriatric populations fall risks and train the community as well as our staff. We have established a budget for continuing education for our nurse practitioner, who in turn will relay that training to our medical assistants and staff in our clinic. We have also created additional tools, and patient information forms and brochures, that will require additional funds to produce.

When I joined Exceptional Healthcare, we were operating at a loss. Operations were being financed with loans. The Board member briefed me on the situation and requested I identify the problem. First, I reviewed all the company expenses, and there was no expense to reduce, so I had to analyze the company’s revenue. I started by categorizing all patient visits by the payer (insurance companies) and by CPT codes (Type of visit/ procedure performed) to determine the reimbursement rates. Using my healthcare finance experience, I compared our reimbursement rates with other clinics in similar market/ business and noticed that ours were $500 to $800 lower. Then I audited the patient charts from the clinic to the billing company and discovered several

Profitability ratios show us whether the companies has the ability to generate profits from its operations. These ratios are important to the company as well as its investors. Profitability ratios let us know the overall performance and efficiency of the company. This includes

In the health care world finances play a significant role in the quality of care rendered to the consumer. There is no health care facility that is the same when it comes to their financial management because it is needed both internally and externally to ensure that it runs properly. Today’s health care field consist of either not-for-profit organizations, for-profit organizations and governmental, (Gapenski, 2008).

This will be a basic forecast created from pro-forma financial statements, using basic forecasting procedures.

Metro Mercy Hospital’s (MMH) downward spiral of financial stability has been compounded by a number of factors to include: over utilization, decreased financial performance, competition from larger more stable competitors, and rapidly changing community dynamic (Zuckerman, 2008). While management has attempted to implement strategies in an effort to re-position MMH to a more financially stable position and ensure long term success its has been met with gradual progress. In the final attempt to save the organization, the board of direction has presented three viable and potential successful solutions: remain freestanding, affiliate with another organization, or merge with a more stable hospital network/system. While all three option have pro and cons to allow the MMH to remain in operation all present significant challenges to sustain those founding principles and official goals originally established when the organization first began operations.

The intention of this research paper is to further understand the financial statement of four distinct hospitals located in the San Diego, California County. An analysis of the financial report for Sharp HealthCare, Scripps Health, Tri-City HealthCare, and Palomar Health will be briefly discussed individually on each important financial outcome’s Such as: assets, liabilities, revenue, expenses, hospital debt, and investments. To analyze further, a break down between the hospitals assets, liabilities, and revenue will be compared in the paper.

Though they are not entirely comprehensive tools, a great deal can be learned about a hospital or other healthcare organization for-profit or not-for-profit from an examination of their annual financial documents (Finkler & Ward, 2006). The balance sheet and statement of revenue and expense can both yield valuable clues even in the absence of other evidence about changes that might be occurring in the organization, a definition of the type and degree of certain problems that it might be facing, and potential opportunities for improvement in performance that might exist (Finkler & Ward, 2006). Comparing two or more years' worth of financial information yields even more valuable insights, tracking movement in the hospital or other organization's ability to finance its activities and thus continue providing services at the same level, quantity, and scope as current operation.

The second article provides a review of the most useful financial analysis tools available to achieve objective is benchmarking, a well-established and long accepted process of financial analysis that can assist managers and their professional advisors, including valuators, in developing a comprehensive understanding of the operating performance and financial status of their organization as a Subject Entity. Benchmarking techniques are often used to determine the degree to which the Subject Entity varies from comparable healthcare industry norms, as well as to provide vital information regarding its trends in internal operational performance and financial status. An appropriate and successful application of benchmarking

Profitability ratios refer to the relative measure to what an actual created profit. Through these ratios the company is allowed to see how profitable the company. In addition it can serve as an examination of the overall performance of the company’s operations and how do these compare to past performances or other companies. The ratios in which accounting measures the profitability of a company are Profit Margin, Price over Earnings, Return on Equity and Return on

A multiple regression analysis is used to determine the relationship or association between independent variables (IVs), also known as predictor variables, and a dependent variable (DV) (Sen & Srivastava, 2012). The purpose of the report is to summarize and analyze the Virginia Hospitals data from 2005 to determine run a multiple regression model against multiple predictor variables and determine statistical significance between the various hospital variables (i.e. independent variables) and the Total Operating Expense (TOE). A multiple linear regression was calculated to predict the DV (i.e.Total Operating Expense_05) based on the IVs (i.e. Staffed beds_05, Medicare Days_05, Medicaid Days_05, Total Surgeries_05, RN FTE_05, Occupancy,

Horizontal analysis is also known as trend analysis. It is a financial statement analysis method that demonstrates changes in the amounts of equivalent financial statement items over a period of time. Moreover, it is a useful tool in order to assess the trend situations in an effective and a more comprehensive manner. It involves the statements for two or more periods to evaluate trend situations. This analysis may be conducted for income statement, balance sheet, schedules of current & fixed assets, and statement of retained earnings of an organization (Wainwright, 2012).

Profitability ratios are the financial statement ratios which focus on how well a business is performing in terms of profit. These ratios are used to find out a business’s earnings relevant to its expenses and other costs during a specific period of time. It can be said that the company is doing well when they have a value higher compared to a