Health Care Finance: Basic Tools For Nonfinancial Managers, Fourth Edition Professor: Sharon R. Elefant HSA4170

Complete ALL exercises

Assignment Exercise 111: Liquidity Ratios

Refer to the Metropolis Health System (MHS) case study in Chapter 25.

Required

1. Set up a worksheet for the liquidity ratios.

2. Compute the four liquidity ratios using the Chapter 25 MHS financial statements. Liquidity Ratios	Numerator [top number]	Denominator [bottom number]	Ratio
Current
Quick
Days Cash on Hand (DCOH)
Days Receivables

Assignment Exercise 112: Solvency Ratios

Refer to the Metropolis Health System (MHS) case study in Chapter 28.

Required

1. Set up a worksheet for the solvency ratios.

2. Compute the solvency ratios using the Chapter 28 MHS financial statements. Solvency Ratios	Numerator [top number]	Denominator [bottom number]	Ratio
Debt Service Coverage (DSCR)
Liabilities to Fund Balance

Assignment Exercise 113: Profitability Ratios

Refer to the Metropolis Health System (MHS) case study in Chapter 28.

Required

1. Set up a worksheet for the profitability ratios.

2. Compute the profitability ratios using the Chapter 25 MHS financial statements. Profitability Ratios	Numerator [top number]	Denominator [bottom number]	Ratio
Operating Margin (%)
Return on Total Assets (%)

CHAPTER Study: Metropolis 28 Health System UND The Hospital System polis Health System (MHS) offers comprehensive healthcare services. It is midsize taxing district hospital. Although MHS has the power to raise revenues a through taxes, it has not done so for the past seven years The Area DEHS is located in the town of Metropolis, which has a population of 50,000. The town has a small college and a modest number of environmentally clean industries MHS Services MHS has taken significant steps to reduce hospital stays. It has developed a compre hensive array of services that are accessible, cost-effective, and responsive to the com munity's needs. These services are wellness oriented in that they strive for prevention rather than treatment. As a result of these steps patient visits have increased over by only 1,000 per year since 2008, whereas outpatient/same-day surgery visits have d an increase of over 50,000 per year. A number of programmatic, services and facility enhancements support this major transition in the community's institutional health care. They are geared to provide quality, convenience, affordability, and personal care that best suit the health eeds of the people whom MHS serves Rehabilitation and Wellness Center for outpatient physical therapy and return- to-work services, plus cardiac and pulmonary rehabilitation, to get people back to a normal way of living. Home Health Services bringing skilled care, therapy, and medical social services into the home; a comfo able and affordable alternative in longer-term care Same-Day Surgery SIDS)-e ating the need for a overnight stay. Since 1998, ame-day surgery procedures have doubled at MHS Skilled Nursing Facility patient service to assist patients in returning more fully to an independent lifestyle. 393