Cases in Financial Mango al Management Private healthcare continue to operate. At the end of 1984 the fund deficit was $749,000. P management firms were solicited for help, but these efforts were short-lived new facility and 25 seven differem 085, and continued pporters to seek Sech In July 1985. Community General Hospital was dedicated, with a new equipment, and a higher occupancy rate. Between 1979 and 1985, Seve administrators had been in charge of the hospital. Continued losses after 1985, and difficulty in retaining continuous management, convinced the hospital's supporters some solution to the ongoing problems. Political avenues were tried with some succe did not last. The sale of the hospital to a doctors' investment group was considered, but hospital's supporters ultimately rejected the deal. with some success, but By 1990 the debt was in excess of $20 million. The 'board' of supporters agreed to file for bankruptcy. The Guarantor of the mortgage, the U.S. Department of Housing and Urban Development, took over the mortgage debt. The hospital continued to operate as the board sought affiliations with other area hospitals. The quality ratings for the hospital continued to suffer. In 1993 the hospital was granted its bankruptcy petition. HUD settled for S4 million. and other creditors were held at bay. Political solutions for Community General's future were sought, but ultimately, did not help the hospital's condition. Administrators were hired, but their tenures were short-lived. By mid 1996 the hospital was again running a large fund deficit and was seeking direction in what appeared to be a rather hopeless situation. The financial statements for Community General Hospital appear in Exhibits 1-4. REQUIRED I. With a quick observation of Community General Hospital's financial statements. what can one conclude concerning a) profitability (nonprofit viability). solvency, and cash flow? 2. What are the root causes of the current condition of the hospital? 3. Come up with some alternative solutions for Community General Hospital. Accordi your recommendations, is Dr. Wright the man for the job? 4. Select one (or a combination) of the alternatives you propose. Illustrate the necessary si involved with your plan's implementation, especially concerning funding sources for implementation of your recommendation(s), and concerning repayment of debt. Cases in Financial Mango al Management Private healthcare continue to operate. At the end of 1984 the fund deficit was $749,000. P management firms were solicited for help, but these efforts were short-lived new facility and 25 seven differem 085, and continued pporters to seek Sech In July 1985. Community General Hospital was dedicated, with a new equipment, and a higher occupancy rate. Between 1979 and 1985, Seve administrators had been in charge of the hospital. Continued losses after 1985, and difficulty in retaining continuous management, convinced the hospital's supporters some solution to the ongoing problems. Political avenues were tried with some succe did not last. The sale of the hospital to a doctors' investment group was considered, but hospital's supporters ultimately rejected the deal. with some success, but By 1990 the debt was in excess of $20 million. The 'board' of supporters agreed to file for bankruptcy. The Guarantor of the mortgage, the U.S. Department of Housing and Urban Development, took over the mortgage debt. The hospital continued to operate as the board sought affiliations with other area hospitals. The quality ratings for the hospital continued to suffer. In 1993 the hospital was granted its bankruptcy petition. HUD settled for S4 million. and other creditors were held at bay. Political solutions for Community General's future were sought, but ultimately, did not help the hospital's condition. Administrators were hired, but their tenures were short-lived. By mid 1996 the hospital was again running a large fund deficit and was seeking direction in what appeared to be a rather hopeless situation. The financial statements for Community General Hospital appear in Exhibits 1-4. REQUIRED I. With a quick observation of Community General Hospital's financial statements. what can one conclude concerning a) profitability (nonprofit viability). solvency, and cash flow? 2. What are the root causes of the current condition of the hospital? 3. Come up with some alternative solutions for Community General Hospital. Accordi your recommendations, is Dr. Wright the man for the job? 4. Select one (or a combination) of the alternatives you propose. Illustrate the necessary si involved with your plan's implementation, especially concerning funding sources for implementation of your recommendation(s), and concerning repayment of debt