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 North Shore Community Hospital and analyze the organization's financial health. North Shore Community Hospital North Shore Community Hospital is a small community hospital serving a rural population. The adjusted discharges are 3.30 for the 1 st year and 3.10 for the 2nd . North Shore Community Hospital Statement of Operations (in thousands) for the Years Ended December 31, 2018 and 2019 2018 2019 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 $3,400 2020 Laureate Education, Inc. Page 2 of 3 North Shore Community Hospital Balance Sheet (in thousands) for the Years Ended December 31, 2018 and 2019 2018 2019 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 5,400 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 17,000 15,000 Board-designated funds 19,000 10,000 Total assets 42,500 30,400 Current liabilities Accounts payable 3,500 3,400 Accrued expenses 850 900 Total current liabilities 4,350 4,300 Long-term liabilities Bonds payable 6,500 6,550 Total long-term liabilities 6,500 6,550 Net assets 31,650 19,550 Total liabilities and net assets $42,500 $30,400 To prepare for this Assignment: Examine the financial statements from North Shore Community Hospital. Reflect on how you will use this financial data to calculate and analyze the organization's financial ratios. Refer to Chapter 13 of Gapinski's Understanding Healthcare Financial

Week 8 Assignment 1 Ratio Template

A

B

D

E

F

G

(in '000)

12/31/2018

12/31/2019

2018

2018

2019

2019

Ratio[a]

[D/E]

[F/G]

Numerator

Denominator

Numerator

Denominator

Current Ratio

Quick Ratio

Acid Test Ratio

Days in Accounts Receivable

Days Cash on Hand

Average Payment Period (Days)

Operating Revenue per Adjusted Discharge

Operating Expense per Adjusted Discharge

Salary & Benefit Exp. as % of Operating Exp.

Operating Margin

Non-Operating Revenue

Return on Total Assets

Return on Net Assets

Total Asset Turnover Ratio

Fixed Asset Turnover Ratio

Age of Plant Ratio

Long-Term Debt to Net Assets

Net Assets to Total Assets