Using Table 14.1 and 14.2 in chapter 14 of the textbook, how will you rate the hospital overall financial health? Pay attention mostly to liquidity, efficiency and solvency ratio.

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TABLE 14-1 Assets Current Assets Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Long-Term Assets Buildings and equipment Less accumulated depreciation Net buildings and equipment Land Goodwill Total long-term assets Total assets 2019 Local Community Hospital Statement of Financial Position As of December 31, 2019 and 2018 (in 000s) 2018 Liabilities and Net Assets Liabilities 4.5% $ 30,000 4.8% 7.9% 16.1% 2.1% 35.5% $ 234,000 Current Liabilities Wages payable Accounts payable 3.7% $ 23,000 Unearned revenue 52,000 11.0% 106,000 14.2% 32,000 4.2% 26,000 68,000 88,000 Total current liabilities 12,000 14,000 1.9% 34.9% $ 217,000 Long-Term Liabilities Mortgage payable Bond payable Other 41.2% $ 256,000 46.7% $ 308,000 13.3% 88,000 33.3% $ 220,000 11.0% 68,000 30.3% $ 188,000 17.4% 16,4% 108,000 108,000 Total long-term liabilities 14.8% 98,000 108,000 17,4% 64.5% $426,000 65.1% $ 404,000 Total liabilities 2019 2.1% $ 14,000 1.9% $ 12,000 10.0% 66,000 9.3% 58,000 38,000 5,2% 32,000 5.8% 17.9% $ 118,000 16.4% $102,000 14.8% $ 98,000 31.5% 208,000 13.0% 86,000 59.4% $ 392,000 77.3% $ 510,000 2018 Net Assets Without donor restrictions With donor restrictions Total net assets 10.9% $ 72,000 11.8% 78,000 22.7% $ 150,000 100.0% $ 660,000 100.0% $621,000 Total liabilities and net assets 100.0% $660,000 17.4% $ 108,000 208,000 33.5% 12.6% 78,000 63.4% $ 394,000 79.9% $496,000 7.6% $ 47,000 12.6% 78,000 20.1% $ 125,000 100.0% $ 621,000 TABLE 14-1 Assets Current Assets Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Long-Term Assets Buildings and equipment Less accumulated depreciation Net buildings and equipment Land Goodwill Total long-term assets Total assets 2019 Local Community Hospital Statement of Financial Position As of December 31, 2019 and 2018 (in 000s) 2018 Liabilities and Net Assets Liabilities 4.5% $ 30,000 4.8% 7.9% 16.1% 2.1% 35.5% $ 234,000 Current Liabilities Wages payable Accounts payable 3.7% $ 23,000 Unearned revenue 52,000 11.0% 106,000 14.2% 32,000 4.2% 26,000 68,000 88,000 Total current liabilities 12,000 14,000 1.9% 34.9% $ 217,000 Long-Term Liabilities Mortgage payable Bond payable Other 41.2% $ 256,000 46.7% $ 308,000 13.3% 88,000 33.3% $ 220,000 11.0% 68,000 30.3% $ 188,000 17.4% 16,4% 108,000 108,000 Total long-term liabilities 14.8% 98,000 108,000 17,4% 64.5% $426,000 65.1% $ 404,000 Total liabilities 2019 2.1% $ 14,000 1.9% $ 12,000 10.0% 66,000 9.3% 58,000 38,000 5,2% 32,000 5.8% 17.9% $ 118,000 16.4% $102,000 14.8% $ 98,000 31.5% 208,000 13.0% 86,000 59.4% $ 392,000 77.3% $ 510,000 2018 Net Assets Without donor restrictions With donor restrictions Total net assets 10.9% $ 72,000 11.8% 78,000 22.7% $ 150,000 100.0% $ 660,000 100.0% $621,000 Total liabilities and net assets 100.0% $660,000 17.4% $ 108,000 208,000 33.5% 12.6% 78,000 63.4% $ 394,000 79.9% $496,000 7.6% $ 47,000 12.6% 78,000 20.1% $ 125,000 100.0% $ 621,000

Answer rating: 100% (QA)

To rate the hospital overall financial health we need to look at several key financial ratios that measure its liquidity efficiency and solvency From ... View the full answer