Cases in Healthcare Finance Case Questions CASE 2 QUESTIONS COMMONWEALTH HEALTH PLANS Assessing HMO Performance 1. Create and interpret Commonweal statement of cash flows for 2013. What information does lth's itprovide regarding the HMOs sources and uses of cash over the past year? 2. Use the Du Pont equation to obtain a rough feel for Commonwealth's financial conditon as compared to national averages. What are your conclusions? 3 Conduct a financial statement and operating indicator analysis and interpret the resuting data. Use both national and state competitor data in the analysis. (Note that all ratios do not have a complete set of comparative data.) 4. Give some examples of ratios that have great significance when conducting a hospitalfinancial performance analysis, yet have limited (or no significance for Commonwealth, and vce versa. 5. List Commonwealth's financial and operating strengths and weaknesses as identified by your analyses in Questions 2 and 3. 6. On the basis of the limited amount of information provided in the case, what are your recommendations to the board to correct any weaknesses noted? 7. What additional information would be useful in the analysis? 8. This analysis focused on Du Pont and ratio analysis. What are some other techniques that can be used in financial statement analysis? 9. What are the major problems that one encounters in performing financial and operating indicator analyses? 10. In your opinion, what are three key learning points from this case? Cases in Healthcare Finance Case Questions CASE 2 QUESTIONS COMMONWEALTH HEALTH PLANS Assessing HMO Performance 1. Create and interpret Commonweal statement of cash flows for 2013. What information does lth's itprovide regarding the HMOs sources and uses of cash over the past year? 2. Use the Du Pont equation to obtain a rough feel for Commonwealth's financial conditon as compared to national averages. What are your conclusions? 3 Conduct a financial statement and operating indicator analysis and interpret the resuting data. Use both national and state competitor data in the analysis. (Note that all ratios do not have a complete set of comparative data.) 4. Give some examples of ratios that have great significance when conducting a hospitalfinancial performance analysis, yet have limited (or no significance for Commonwealth, and vce versa. 5. List Commonwealth's financial and operating strengths and weaknesses as identified by your analyses in Questions 2 and 3. 6. On the basis of the limited amount of information provided in the case, what are your recommendations to the board to correct any weaknesses noted? 7. What additional information would be useful in the analysis? 8. This analysis focused on Du Pont and ratio analysis. What are some other techniques that can be used in financial statement analysis? 9. What are the major problems that one encounters in performing financial and operating indicator analyses? 10. In your opinion, what are three key learning points from this case
