Instructions: Using financial and operations indicators and benchmark information provided on the table below for 2014 conduct an evaluation of the financial healthiness of New York University Langone Medical Center (NYU LMC). You are also given indicators from its nearest competitor New York-Presbyterian Hospital/Weill Cornell Medical Center. You should include observations in relation to its nearest competitor, and where appropriate the benchmark that is indicated Although the difference in bed size of the two facilities listed are quite different (668 beds vs. 2391 beds), in most cases you are comparing percentages, not actual numbers. Therefore, comparisons can be made since percentages are based on 100 Students should divide in their response into the following categories: A. Balance Sheets And Income Statement Indicators B. Profitability Ratios C. Liquidity Ratios D. Assets Management Ratios E. Other Ratios F. Efficiency And Operations Measures G. Volume Indicators H. Intensity Of Service Indicators Example SW Contractual allowance percent measures the percentage of total patient revenue (both inpatient and outpatient) that is lost because of allowances and discounts. It is the difference between the rates billed to a third-party payer and the amount that actually will be paid. The greater this percentage, the more the provider losses in revenue because the provider has had to accept giving discounts to managed care companies in order for the provider to be listed on the plan as a provider. It is not uncommon for different plans to pay different contractual rates for the same service From the indicators listed above, it would appear that NYU Langone Medical Center must reduce their total patient revenue by 6% more than New York Presbyterian Hospital -68% vs. 62%. This means for example, that NYU may be giving their managed care companies a higher discount for the healthcare services the hospital provides its members. Providers would prefer not to provide any discounts or allowances on top of their total patient revenue received. For a provider, the lower the percentage the better Instructions: Using financial and operations indicators and benchmark information provided on the table below for 2014 conduct an evaluation of the financial healthiness of New York University Langone Medical Center (NYU LMC). You are also given indicators from its nearest competitor New York-Presbyterian Hospital/Weill Cornell Medical Center. You should include observations in relation to its nearest competitor, and where appropriate the benchmark that is indicated Although the difference in bed size of the two facilities listed are quite different (668 beds vs. 2391 beds), in most cases you are comparing percentages, not actual numbers. Therefore, comparisons can be made since percentages are based on 100 Students should divide in their response into the following categories: A. Balance Sheets And Income Statement Indicators B. Profitability Ratios C. Liquidity Ratios D. Assets Management Ratios E. Other Ratios F. Efficiency And Operations Measures G. Volume Indicators H. Intensity Of Service Indicators Example SW Contractual allowance percent measures the percentage of total patient revenue (both inpatient and outpatient) that is lost because of allowances and discounts. It is the difference between the rates billed to a third-party payer and the amount that actually will be paid. The greater this percentage, the more the provider losses in revenue because the provider has had to accept giving discounts to managed care companies in order for the provider to be listed on the plan as a provider. It is not uncommon for different plans to pay different contractual rates for the same service From the indicators listed above, it would appear that NYU Langone Medical Center must reduce their total patient revenue by 6% more than New York Presbyterian Hospital -68% vs. 62%. This means for example, that NYU may be giving their managed care companies a higher discount for the healthcare services the hospital provides its members. Providers would prefer not to provide any discounts or allowances on top of their total patient revenue received. For a provider, the lower the percentage the better
