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1. Based on information discussed in the PowerPoint entitled The Changing Health Care Environment: Changed Healthcare Economics The New Business Models, show your

1. Based on information discussed in the PowerPoint entitled " The Changing Health Care Environment: Changed Healthcare Economics – The New Business Models," show your understanding of the following: The shift from traditional hospital growth (Price Extractive Growth) strategies to the new business model. Include a discussion of Key Success Factors, Target of Strategy, Performance Metrics, Competitive Dynamics, and Critical Infrastructure. Be mindful that you can't simply list PowerPoint information. You must include clear examples showing your understanding of the material taken from the powerpoints.
2. Based on information found in Chapter 17 (Financial Condition Analysis) and the financial statements of Heart Hospital (see Exhibit 1 & 2 below) answer the following question:

Calculate and evaluate the following ratios for the Heart Hospital using the information provided:

a. Return On Assets – Industry Average 22.5%
b. Current Ratio – Industry Average 2.0
c. Days Cash On Hand – Industry Average 85 Days
d. Average Collection Period – Industry Average 20 Days
e. Debt Ratio – Industry Average Of 40%
f. Debt To Equity Ratio – Industry Average 0.67
g. Fixed Asset Turnover Ratio – Industry Average 1.4You should start your analysis by providing a clear definition of the term in words that show your understanding of the significance of the term when conducting analysis and evaluation of financial healthiness.

3. Read, “One New York, health care for our Neighbourhoods, Transforming Health + Hospitals.” In the report, the section entitled, Health + Hospitals Faces a Significant and Looming Financial Crisis, the authors conclude that the Health + Hospitals is on the edge of a financial cliff.

a. On what basis is this conclusion reached? (You must support your conclusions based upon specific financial information in the report.)
b. What are the root causes of this dilemma (You must be specific and include financial information)
c. How does NYCHHC plan on responding to the crisis – be specific.

4. Answer the question below using the case studies of Goth Medical Center and Rhode Island Health Plans as a guide. You must include numbers as well and words. You must use appropriate finance terms.
Below, please find Newport Hospital Financial and Operations Indicators (Exhibit 3).
a. Determine the financial healthiness of the facility.
b. Make recommendations based on your conclusions to move toward and maintain financial healthiness.


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