CHAPTER $17$: FINANCIAL CONDITION ANALYSIS

Homework Problem $5\mathrm{.}2$

THE HEART HOSPITAL

OPERATING DATA

Net inpatient revenue $$118,449,000$

Net outpatient revenue $$128,650,000$

Net patient service revenue $$247,099,000$

Inpatient operating expenses $$116,265,050$

Total salaries $$117,914,830$

Total discharges $,21,475$

Inpatient days $123,579$

# licensed and staffed beds $,500$

Total FTEs $,3,650$

Inpatient FTEs $,1,725$

Calculate the following ratios based upon the data above

$\backslash$table$[[$For each ratio, provide a brief ratio analysis and comparative analysis.,$],[$Indicator Analysis:,Briefly explain what the indicator means$],[$Comparative Analysis,$\backslash$table$[[$Compare The Heart Hospital with peer group averages and explain how it did$],[$compared to other comparable hospitals.$]]]]$

OPERATING INDICATOR ANALYSIS

Heart Hospital

Industry Average

Profit per Discharge

$\backslash$table$[[$$$73,$Indicator Analysis,$],[,$Comparative Analysis,$],[,,]]$

Net Price per Discharge

Outpatient Revenue $\%$

Occupancy Rate

Average Length of Stay

Inpatient FTEs per Occupied Bed

$\backslash$table$[[5\mathrm{.}09,5\mathrm{.}6,$Indicator Analysis,This ratio is showing how the hospital effectively manages the staff in relation to the number o$],[338\mathrm{.}5734247,$Comparative Analysis,The hospital is more effective in managing its staff per occupied bed and shows its ratio being,$],[,,,]]$

$5\mathrm{.}094906671$

Salary per FTE

$\backslash$table$[[,56\mathrm{.}6\%,$Indicator Analysis,$],[,$Comparative Analysis,,$]]$

$\backslash$table$[[$$$32,305,$$$33,977,$Indicator Analysis,This ratio illustrates the average salary expense accrued per full time equivalent employee, pr$],[$$$32,305,$Comparative Analysis,Showing a salary per FTE of $$32,305,43$ the hospital should compare with the industry average,$],[,,,]]$

COMPLETE EXCEL SHEET and provide formulas