Question
COVID-19 will have a significant financial impact on all types of health care organizations. The American Health Care Association has predicted that 40 percent of
COVID-19 will have a significant financial impact on all types of health care organizations. The American Health Care Association has predicted that 40 percent of nursing homes in the US will close next year due to financial issues, and the Medical Group Management Association estimates that revenue for medical group practices dropped by 32 percent on average since February 2020. Pick two types of health care organizations, and identify and describe 4 financial indicators (these can be financial ratios, operational indicators or parts of financial statements) that you could use to evaluate the liquidity, profitability and viability of these two types of organizations in 2021. How can these measures help an administrator identify problematic trends in their organizations, and address them before they face closure of their business?
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