Examine the industry average ratios given in problem 17.4 and 17.5. Explain why the ratios are different between the managed care and nursing home industries.

ted in the book are valid for both 2014 and 2015. ing financial statements for BestCare HMO, a der the following not-for-profit managed care plan re HMO Statement of Operations and BestCare Change in Net Assets, Year Ended June 30, 2015 (in thousands) Revenue: Premiums earned Coinsurance Interest and other income Total revenues Expenses: Salaries and benefits Medical supplies and drugs Insurance Provision for bad debts Depreciation Interest Total expenses Net income $26,682 1,689 242 $28,613 $15,154 7,507 3,963 19 367 385 $27,395 S 1,218 Net assets, beginning of year Net assets, end of year S 900 s 2,118 BestCare HMO Balance Sheet, June 30, 2015 (in thousands) Assets: Cash and cash equivalents Net premiums receivable Supplies Total current assets Net property and equipment Total assets $2,737 821 387 $3,945 $5,924 $9,869 (continued)