It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the healthcare industry. For this Assignment, you examine the financial documents for Madison Community Hospital and analyze the organization's financial health

It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the healthcare industry. For this Assignment, you examine the financial documents for Madison Community Hospital and analyze the organization's financial health. Madison Community Hospital Madison Community Hospital is a small community hospital serving a rural population. The adjusted discharges are 3.30 for the 1* year and 3.10 for the 2nd. Madison Community Hospital Statement of Operations (in thousands) for the Years Ended December 31, 2016 and 2017 2016 2017 Revenues Net patient service revenue $23,000 $22,500 Net assets released from restriction 1,000 800 Total operating revenues 24,000 23,300 Expenses Salaries and benefits 10,500 9,000 Supplies and other expenses 7,000 5,000 Depreciation 3,500 2,500 General services 300 520 Total operating expenses 21,300 17,020 Operating income 4,520 1,200 Non-operating income 3,500 2,200 Excess of revenues over expenses 8,020 3,400 Increase (decrease) in net assets $8,020 $3,400Madison Community Hospital Balance Sheet (in thousands) for the Years Ended December 31, 2016 and 2017 2016 2017 Current assets Cash and cash equivalents $1, 100 $800 Net patient receivables 4,200 3,500 Inventory 1,200 1,100 Total current assets 6,500 5,250 Non-current assets Plant, property, and equipment Gross plant, property, and equipment 35,000 32,000 (less accumulated depreciation) (18,000) (17,000) Net plant, property, and equipment 19,000 16,500 Board-designated funds 19,000 10,000 Total assets 44,500 31,750 Current liabilities Accounts payable 3,500 3,400 Accrued expenses 850 900 Total current liabilities 4,350 4,300 Long-term liabilities Bonds payable 8,500 7,900 Total long-term liabilities 8,500 7,900 Net assets 31,650 19,550 Total liabilities and net assets $44,500 $31,750