hcm

Purpose To assess your ability to: Identify a healthcare organization's primary financial objectives. Interpret changes in financial ratios. Action Items 1. Review Chapter 12 in your textbook before you begin working on this assignment. 2. Review the Financial Ratios for Calvin Community Clinic below: (2009 2008 Current ratio 2.2 2.1 Acid test ratio 0.25 10.1 Days in accts receivable 45 160 Average payment period 143 143 Days cash on hand 15 3.58 2.54 Fixed asset turnover Total asset tumover 1.1 1.04 Operating margin 10.1 10.03 Return on total assets 10.2 10.12 Long term debt to net assets 1.1 12.18 Net assets to total assets 1 10 Debt service coverage 13.2 2.1 2 Age of plant 5.7 3.5 3 3. Analyze the financial ratios for Calvin Community Clinic. a. Download the Financial Ratio document b. Fill in the data for the Clinic for years 2008 and 2009. c. Determine the reason(s) for the changes from year-to-year. d. State the impact the ratio changes will have on the clinic. 4. Conduct research for at least two non-profit healthcare organizations during the period of FY 2008 to FY 2009 which you can use to benchmark the clinic. If you cannot locate information for these two years specifically, any two consecutive years will work. Many large hospitals and healthcare organizations will post their financial performance online. 5. Go back to the Financial Ratio Document in which you have already filled in information about the clinic Fill in the researched ratio column. 6. Analyze why the researched ratio differs from the clinic ratios. 7. Write a 2-3 page paper in which you discuss, in detail, the bullet items below. Incorporate research into your paper from at least two relevant, scholarly resources. Follow all applicable APA Guidelines es regarding in text citations, list of cited references, and document formatting for this paper. Failure to properly cite and reference sources constitutes plagiarism. The title page and reference list are not included in the page count for this paper, a. Compare the financial ratios from Calvin Clinic to the financial ratios you researched b. Speculate on whet the driving factors of the ratio improvements might have been c. Explain why the driving factors were important then and what might their importance be today, 8. Include your Financial Ratio document as an appendix to your paper 9. Submit the completed first draft of your assignment at least 48 hours prior to the due date. Your work will automatically be checked by Turnitin. les Interpreting Financial Ratios HCM 320 Clinic 2009 Clinic 2008 Possible Reasons for the Change ratio Impact the Researched Analysis of ratio why the change on researched the clinic ratio differs from the clinic ratio Current ratio Quick or acid test ratio Days cash on hand Long term debt to net assets clinic ratio Current ratio Quick or acid test ratio Days cash on hand Long term debt to net assets Operating margin Purpose To assess your ability to: Identify a healthcare organization's primary financial objectives. Interpret changes in financial ratios. Action Items 1. Review Chapter 12 in your textbook before you begin working on this assignment. 2. Review the Financial Ratios for Calvin Community Clinic below: (2009 2008 Current ratio 2.2 2.1 Acid test ratio 0.25 10.1 Days in accts receivable 45 160 Average payment period 143 143 Days cash on hand 15 3.58 2.54 Fixed asset turnover Total asset tumover 1.1 1.04 Operating margin 10.1 10.03 Return on total assets 10.2 10.12 Long term debt to net assets 1.1 12.18 Net assets to total assets 1 10 Debt service coverage 13.2 2.1 2 Age of plant 5.7 3.5 3 3. Analyze the financial ratios for Calvin Community Clinic. a. Download the Financial Ratio document b. Fill in the data for the Clinic for years 2008 and 2009. c. Determine the reason(s) for the changes from year-to-year. d. State the impact the ratio changes will have on the clinic. 4. Conduct research for at least two non-profit healthcare organizations during the period of FY 2008 to FY 2009 which you can use to benchmark the clinic. If you cannot locate information for these two years specifically, any two consecutive years will work. Many large hospitals and healthcare organizations will post their financial performance online. 5. Go back to the Financial Ratio Document in which you have already filled in information about the clinic Fill in the researched ratio column. 6. Analyze why the researched ratio differs from the clinic ratios. 7. Write a 2-3 page paper in which you discuss, in detail, the bullet items below. Incorporate research into your paper from at least two relevant, scholarly resources. Follow all applicable APA Guidelines es regarding in text citations, list of cited references, and document formatting for this paper. Failure to properly cite and reference sources constitutes plagiarism. The title page and reference list are not included in the page count for this paper, a. Compare the financial ratios from Calvin Clinic to the financial ratios you researched b. Speculate on whet the driving factors of the ratio improvements might have been c. Explain why the driving factors were important then and what might their importance be today, 8. Include your Financial Ratio document as an appendix to your paper 9. Submit the completed first draft of your assignment at least 48 hours prior to the due date. Your work will automatically be checked by Turnitin. les Interpreting Financial Ratios HCM 320 Clinic 2009 Clinic 2008 Possible Reasons for the Change ratio Impact the Researched Analysis of ratio why the change on researched the clinic ratio differs from the clinic ratio Current ratio Quick or acid test ratio Days cash on hand Long term debt to net assets clinic ratio Current ratio Quick or acid test ratio Days cash on hand Long term debt to net assets Operating margin