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3) Beyond the numbers: review the brief narrative below. Based on your financial analysis you have completed, how do you feel the financial position of
3) Beyond the numbers: review the brief narrative below. Based on your financial analysis you have completed, how do you feel the financial position of the organization will affect the strategic decisions of the organization? What recommendations would you have for the organization? For the written summary provide a paragraph, or two, discussing how the financial status of the organization impacts the strategic direction of the organization.Beyond the numbers: Louisville Community Hospital. Louisville Community Hospital (LCH) is medium sized, 125 bed hospital in a competitive greater metropolitan area of Louisville, Kentucky. Of particular interest to the Board of Trustees of LCH are the liquidity ratios. A large philanthropic donation was received by LCH in 2011. How would this donation affect the liquidity ratios? The Board of Trustees and upper management also want to be made aware of the expense structure of the hospital. Staffing has increased at the hospital over the last few years, due to the hospital's forecasted strategic position of potentially increasing patient volumes across various service lines. Finally, from an investment planning standpoint, the hospital has invested discretionary funds in new investments as a part of their investment portfolio, as well as new fixed assets. Provide an assessment of this strategy on the financial position of the hospital. Does it have an effect based on your analysis?\fRatio 12/31/20X1 12/31/20X0 Benchmark Desired Position Operating Revenue per Adjusted Discharge $7,272.72 $6,387.10 $10,650 Above Operating Expense per Adjusted Discharge $6,878.79 $5,516.13 $10,223 Below Salary & Benefit Exp. As % of Operating Exp. 57% 53% 37% Below Operating Margin 0.05 0.14 0.02 Above Non-operating Revenue Ratio 0.22 0.27 0.02 Varies Return on Total Assets 0.165 0.251 0.05 Above
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