4. Given the financial ratio and operating benchmarks below, assess the hospital's performance and provide recommendations to
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4. Given the financial ratio and operating benchmarks below, assess the hospital's performance and provide recommendations to improve financial performance.
Profitability | Hospital | Median | 25th | 75th | % Difference |
Total Margin | 3.3% | 4.4% | -0.2% | 9.7% | -24.1% |
Operating Margin | 2.9% | 3.8% | -0.8% | 9.1% | -22.9% |
ROA | 3.4% | 4.5% | 1.2% | 18.0% | -24.4% |
ROE | 5.9% | 8.4% | -0.1% | 10.4% | -29.8% |
Liquidity | |||||
Days in AR | 54.0 | 56.1 | 46.8 | 70.5 | -3.7% |
Capital Structure | |||||
Times Interest Earned | 3.84 | 4.7 | 0.9 | 13.1 | -17.6% |
Equity Financing | 54.8% | 57.5% | 35.2% | 79.2% | -4.7% |
Turnover | |||||
Total Asset Turnover | 1.10 | 1.2 | 0.8 | 1.7 | -4.3% |
Current Asset Turnover | 3.50 | 3.7 | 2.4 | 5.1 | -4.4% |
Fixed Asset Turnover | 2.67 | 2.7 | 1.9 | 4.3 | -1.8% |
Operating Indicators | Hospital | Median | 25th | 75th | % Difference |
Occupancy | 56.8% | 55.3% | 39.0% | 68.4% | 2.7% |
Discharges per bed | 34.1 | 33.0 | 17.4 | 47.5 | 3.3% |
Adjusted ALOS | 2.8 | 2.7 | 2.4 | 3.0 | 3.7% |
Medicare % Discharges | 44.9% | 40.3% | 30.0% | 52.9% | 11.4% |
Medicaid % Discharges | 7.3% | 5.7% | 1.9% | 12.9% | 28.1% |
Outpatient Revenue % | 44.7% | 58.4% | 44.2% | 71.5% | -23.5% |
Salaries per Adjusted Discharge | $2,561 | $2,382 | $1,982 | $2,866 | 7.5% |
FTEs per Occupied Bed | 4.0 | 3.7 | 3.2 | 4.3 | 9.3% |
Salaries as % of Total Expense | 42.7% | 39.8% | 34.6% | 44.7% | 7.3% |
Deductible ratio | 68.2% | 62.7% | 48.8% | 72.0% | 8.8% |
Related Book For
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
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