PLE Reguired 1. Use the tables provided to SHOW YOUR WORK for the liquidity, solvency, and profitability ratios. 2. Compute the ratios using the Chapter 33 MHS financial statements, Liquidity Ratios Ratio Numerator top number] Denominator (bottom number Liquidity Ratios Current Quick Days Cash on Hand (DCOH) | Days Receivables Solvency Ratios Ratio Numerator top number] Denominator [bottom number] Solvency Ratios Debt Service Coverage (DSCR) Liabilities to Fund Balance Profitability Ratios Ratio Numerator Denominator top numberb ottom number Profitability Ratios Operating Margin (%) Return on Total Assets (%) Revu Statement of Cash Po Statement of Changes in Fund Balun Schedule of Property, Plant, and Equipment (Exhibit 3. Schedule of Patient Revenue (Exhibit 33-6) Schedule of Operating Expenses (Exhibit 33-7) Tota Expo Exhibit 33-1 Balance Sheet Metropolis Health System Balance Sheet March 31, 2 TO Assets Current Assets Cash and Cash Equivalents $1,150,000 Assets Whose Use Is Limited 825,000 Patient Accounts Receivable 7,400,000 (Net of $1,300,000 Allowance for Bad Debts) Other Receivables 300,000 Liabilities and Fund Balance Current Liabilities Current Maturities of Long-Term Debt $325,000 Accounts Payable and Accrued Expenses 4,900.000 Bond Interest Payable Reimbursement Settlement Payable 100,000 Total Current Liabilities 5,825,000 Long-Term Debt 6,000,000 Less Current Portion of Long-Term Debt (525,000 Net Long-Term Debt 5,475,000 Total Liabilities 11,300,000 Fund Balances General Fund 21,500,000 Statistics a 150,000 900,000 Inventories 200,000 Prepaid Expenses Total Current Assets 10,625,000 Assets Whose Use Is Limited Corporate Funded Depreciation 1,950,000 Held by Trustee Under Bond Indenture Agreement 1,425,000 Total Assets Whosc Use Is Limited 3,375,000 Less Current Portion (825,000) Net Assets Whose Use Is Limited 2,550,000 Property, Plant, and Equipment, Net 19,300,000 Other Assets 325,000 Total Assets $32,800,000 21,500,000 Hospi Total Fund Balances Total Liabilities and Fund Balances MHS MHS $32,800,000 MHS Case Study 463 ent of Revenue and Expense w38-2 Statement of Metropolis Health System Statement of Revenue and Expense for the Year Ended March 31, 2 Revenue Set patient service revenue Other revenue Total Operating Revenue $34,000,000 1,100,000 $35,100,000 Expenses Nursing services Other professional services General services Support services Depreciation Amortization Interest Provision for doubtful accounts $5,025,000 13,100,000 3,200,000 8,300,000 1,900,000 50,000 325,000 1,500,000 33,400,000 Total Expenses $1,700,000 Income from Operations $20,000 80,000 Nonoperating Gains (Losses) Unrestricted gifts and memorials Interest income Nonoperating Gains, Net 100,000 $1,800,000 Revenue and Gains in Excess of Experis Excess of Expenses and Losses Statistics and und Organizational Structure Hospital Stal MHS Nursing cal Data (Exhibit 33-8) MHS Execu ursing Practice and Adminis Administration Organization Chart (Figure 33-1) 15 Executive-Level Organ vel Organization Chart (Figure 33 464 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-3 Statement of Cash Flows Metropolis Health System Statement of Cash Flows for the Year Ended March 31, 2 Gen Statement of Cash Flows Reve $1,700,000 Gen Operating Activities Income from operations Adjustments to reconcile income from operations to net cash flows from operating activities Depreciation and amortization Changes in asset and liability accounts Patient accounts receivable Other receivables 1,950,000 250,000 (50,000) (50,000) (50,000) Exhibit 33-5 S Inventories Prepaid expenses and other assets Accounts payable and accrued expenses Reduction of bond interest payable Estimated third-party payer settlements Interest income received Unrestricted gifts and memorials received Net cash flow from operating activities (400,000) (25,000) (75,000) 80,000 20,000 $3,350,000 Buil Lan Cash Flows from Capital and Related Financing Activities Repayment of long-term obligations (500,000) Equ Cash Flows from Investing Activities Purchase of assets whose use is limited Equipment purchases and building improvements (100,000) (2,000,000) Less $750,000 Net Increase (Decrease) in Cash and Cash Equivalents Lan 400,000 Cash and Cash Equivalents, Beginning of Year $1,150,000 Cor Cash and Cash Equivalents, End of Year Net MHS Case Study 465 of Changes in Fund Balance Statement of Metropolis Health System Statement of Changes in Fund Balan for the Year Ended March 31,2 al Fund Balance April 1, 2 General Fund B $19,700,000 Gains in Excess of Expenses and Losses Revenue and Gainsi 1,800,000 eral Fund Balance March 31, 2 $21,500,000 hedule of Property, Plant, and Equipment 0-5 Schedu Metropolis Health System Schedule of Property, Plant, and Equipment for the Year Ended March 31,2_ $14,700,000 Buildings and Improvements 1,100,000 Land Improvements 28,900,000 Equipment $44,700,000 Total (26,100,000) Less Accumulated Depreciation $18,600,000 Net Depreciable Assets 480,000 Land 220,000 Construction in Progress $19,300,000 Net Property, Plant, and Equipmen 466 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-6 Schedule of Patient Revenue Metropolis Health System Schedule of Patient Revenue for the Year Ended March 31, 2 Nising Ser Noutine Me Operating Intensive C OB-Nursery Other Total Patient Services Revenue Routine revenue Laboratory Radiology and CT scanner OB-nursery Pharmacy Emergency service Medical and surgical supply and IV Operating rooms Anesthesiology Respiratory therapy Physical therapy EKG and EEG Ambulance service Oxygen Home health and hospice Substance abuse Other $9,850,000 7,375,000 5,825,000 450,000 3,175,000 2,200,000 5,050,000 5,250,000 1,600,000 900,000 1,475,000 1,050,000 900,000 575,000 1,675,000 375,000 775,000 Other Profe Laboratory Radiology a Pharmacy Emergency Medical and Operating R Anesthesi: Bespiratory Physical The $48,500,000 Subtotal EKG and EE Ambulance Substance A Home Healt (14,500,000) Less allowances and charity care hver Total $34,000,000 Net Patient Service Revenue MHS Case Study 467 27 Schedule of Operating Expenses Exhibit 33-7 Sche Metropolis Health System Schedule of Operating Expenses for the Year Ended March 31, 2 Nursing Services Routine Medical/Surgical Operating Room Intensive Care Units OB-Nursery Other Total $3,880,000 300,000 395,000 150,000 300,000 $5,025,000 General Services Dietary Maintenance Laundry Housekeeping Security Medical Records Total $1,055,000 1,000,000 295,000 470,000 50,000 330,000 $3,200,000 $2,375,000 1,700,000 1,375,000 950,000 1,800,000 Support Services General Insurance Payroll Taxes Employce Welfare Other Total $4,600,000 240,000 1,130,000 1,900,000 430.000 $8,300,000 1,525,000 Other Professional Services Laboratory Radiology and CT Scanner Pharmacy Emergency Service Medical and Surgical Supply Operating Rooms and Anesthesia Respiratory Therapy Physical Therapy EKG and EEG Ambulance Service Substance Abuse Home Health and Hospice Other Total 525,000 Depreciation Amortization 1,900,000 50,000 700,000 185,000 80,000 460,000 Interest Expense 325,000 1,295,000 130,000 $13,100,000 Provision for Doubtful Accounts 1,500,000 Total Operating Expenses $33,400,000 468 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-8 Hospital Statistical Data Metropolis Health System Schedule of Hospital Statistics for the Year Ended March 31, 2 Departmental Volume Indicators: Inpatient Indicators: Patient Days 13,650 Respiratory therapy treatments Medical and surgical 51,480 Obstetrics 1,080 Physical therapy treatments 34,050 Skilled nursing unit 4,500 Laboratory workload units in thousands) 2,750 Admissions EKGs Adult acute care 3,610 CT scans 2.780 Newborn 315 MRI scans 910 Skilled nursing unit 440 Emergency room visits 11,820 Ambulance trips 2,320 Discharges Home health visits 14,950 Adult acute care 3,580 Newborn 315 Approximate number of employees Skilled nursing unit 445 (FTE) 510 8,900 Average Length of Stay (in days) 4.1 Director of Nurses TOI Finance Information Systems Support Education Recruitment Support Medical Surgical amm Ambulatory Pediatric Nursing Women's a lth PLE Reguired 1. Use the tables provided to SHOW YOUR WORK for the liquidity, solvency, and profitability ratios. 2. Compute the ratios using the Chapter 33 MHS financial statements, Liquidity Ratios Ratio Numerator top number] Denominator (bottom number Liquidity Ratios Current Quick Days Cash on Hand (DCOH) | Days Receivables Solvency Ratios Ratio Numerator top number] Denominator [bottom number] Solvency Ratios Debt Service Coverage (DSCR) Liabilities to Fund Balance Profitability Ratios Ratio Numerator Denominator top numberb ottom number Profitability Ratios Operating Margin (%) Return on Total Assets (%) Revu Statement of Cash Po Statement of Changes in Fund Balun Schedule of Property, Plant, and Equipment (Exhibit 3. Schedule of Patient Revenue (Exhibit 33-6) Schedule of Operating Expenses (Exhibit 33-7) Tota Expo Exhibit 33-1 Balance Sheet Metropolis Health System Balance Sheet March 31, 2 TO Assets Current Assets Cash and Cash Equivalents $1,150,000 Assets Whose Use Is Limited 825,000 Patient Accounts Receivable 7,400,000 (Net of $1,300,000 Allowance for Bad Debts) Other Receivables 300,000 Liabilities and Fund Balance Current Liabilities Current Maturities of Long-Term Debt $325,000 Accounts Payable and Accrued Expenses 4,900.000 Bond Interest Payable Reimbursement Settlement Payable 100,000 Total Current Liabilities 5,825,000 Long-Term Debt 6,000,000 Less Current Portion of Long-Term Debt (525,000 Net Long-Term Debt 5,475,000 Total Liabilities 11,300,000 Fund Balances General Fund 21,500,000 Statistics a 150,000 900,000 Inventories 200,000 Prepaid Expenses Total Current Assets 10,625,000 Assets Whose Use Is Limited Corporate Funded Depreciation 1,950,000 Held by Trustee Under Bond Indenture Agreement 1,425,000 Total Assets Whosc Use Is Limited 3,375,000 Less Current Portion (825,000) Net Assets Whose Use Is Limited 2,550,000 Property, Plant, and Equipment, Net 19,300,000 Other Assets 325,000 Total Assets $32,800,000 21,500,000 Hospi Total Fund Balances Total Liabilities and Fund Balances MHS MHS $32,800,000 MHS Case Study 463 ent of Revenue and Expense w38-2 Statement of Metropolis Health System Statement of Revenue and Expense for the Year Ended March 31, 2 Revenue Set patient service revenue Other revenue Total Operating Revenue $34,000,000 1,100,000 $35,100,000 Expenses Nursing services Other professional services General services Support services Depreciation Amortization Interest Provision for doubtful accounts $5,025,000 13,100,000 3,200,000 8,300,000 1,900,000 50,000 325,000 1,500,000 33,400,000 Total Expenses $1,700,000 Income from Operations $20,000 80,000 Nonoperating Gains (Losses) Unrestricted gifts and memorials Interest income Nonoperating Gains, Net 100,000 $1,800,000 Revenue and Gains in Excess of Experis Excess of Expenses and Losses Statistics and und Organizational Structure Hospital Stal MHS Nursing cal Data (Exhibit 33-8) MHS Execu ursing Practice and Adminis Administration Organization Chart (Figure 33-1) 15 Executive-Level Organ vel Organization Chart (Figure 33 464 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-3 Statement of Cash Flows Metropolis Health System Statement of Cash Flows for the Year Ended March 31, 2 Gen Statement of Cash Flows Reve $1,700,000 Gen Operating Activities Income from operations Adjustments to reconcile income from operations to net cash flows from operating activities Depreciation and amortization Changes in asset and liability accounts Patient accounts receivable Other receivables 1,950,000 250,000 (50,000) (50,000) (50,000) Exhibit 33-5 S Inventories Prepaid expenses and other assets Accounts payable and accrued expenses Reduction of bond interest payable Estimated third-party payer settlements Interest income received Unrestricted gifts and memorials received Net cash flow from operating activities (400,000) (25,000) (75,000) 80,000 20,000 $3,350,000 Buil Lan Cash Flows from Capital and Related Financing Activities Repayment of long-term obligations (500,000) Equ Cash Flows from Investing Activities Purchase of assets whose use is limited Equipment purchases and building improvements (100,000) (2,000,000) Less $750,000 Net Increase (Decrease) in Cash and Cash Equivalents Lan 400,000 Cash and Cash Equivalents, Beginning of Year $1,150,000 Cor Cash and Cash Equivalents, End of Year Net MHS Case Study 465 of Changes in Fund Balance Statement of Metropolis Health System Statement of Changes in Fund Balan for the Year Ended March 31,2 al Fund Balance April 1, 2 General Fund B $19,700,000 Gains in Excess of Expenses and Losses Revenue and Gainsi 1,800,000 eral Fund Balance March 31, 2 $21,500,000 hedule of Property, Plant, and Equipment 0-5 Schedu Metropolis Health System Schedule of Property, Plant, and Equipment for the Year Ended March 31,2_ $14,700,000 Buildings and Improvements 1,100,000 Land Improvements 28,900,000 Equipment $44,700,000 Total (26,100,000) Less Accumulated Depreciation $18,600,000 Net Depreciable Assets 480,000 Land 220,000 Construction in Progress $19,300,000 Net Property, Plant, and Equipmen 466 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-6 Schedule of Patient Revenue Metropolis Health System Schedule of Patient Revenue for the Year Ended March 31, 2 Nising Ser Noutine Me Operating Intensive C OB-Nursery Other Total Patient Services Revenue Routine revenue Laboratory Radiology and CT scanner OB-nursery Pharmacy Emergency service Medical and surgical supply and IV Operating rooms Anesthesiology Respiratory therapy Physical therapy EKG and EEG Ambulance service Oxygen Home health and hospice Substance abuse Other $9,850,000 7,375,000 5,825,000 450,000 3,175,000 2,200,000 5,050,000 5,250,000 1,600,000 900,000 1,475,000 1,050,000 900,000 575,000 1,675,000 375,000 775,000 Other Profe Laboratory Radiology a Pharmacy Emergency Medical and Operating R Anesthesi: Bespiratory Physical The $48,500,000 Subtotal EKG and EE Ambulance Substance A Home Healt (14,500,000) Less allowances and charity care hver Total $34,000,000 Net Patient Service Revenue MHS Case Study 467 27 Schedule of Operating Expenses Exhibit 33-7 Sche Metropolis Health System Schedule of Operating Expenses for the Year Ended March 31, 2 Nursing Services Routine Medical/Surgical Operating Room Intensive Care Units OB-Nursery Other Total $3,880,000 300,000 395,000 150,000 300,000 $5,025,000 General Services Dietary Maintenance Laundry Housekeeping Security Medical Records Total $1,055,000 1,000,000 295,000 470,000 50,000 330,000 $3,200,000 $2,375,000 1,700,000 1,375,000 950,000 1,800,000 Support Services General Insurance Payroll Taxes Employce Welfare Other Total $4,600,000 240,000 1,130,000 1,900,000 430.000 $8,300,000 1,525,000 Other Professional Services Laboratory Radiology and CT Scanner Pharmacy Emergency Service Medical and Surgical Supply Operating Rooms and Anesthesia Respiratory Therapy Physical Therapy EKG and EEG Ambulance Service Substance Abuse Home Health and Hospice Other Total 525,000 Depreciation Amortization 1,900,000 50,000 700,000 185,000 80,000 460,000 Interest Expense 325,000 1,295,000 130,000 $13,100,000 Provision for Doubtful Accounts 1,500,000 Total Operating Expenses $33,400,000 468 CHAPTER 33 Case Study: Metropolis Health System Exhibit 33-8 Hospital Statistical Data Metropolis Health System Schedule of Hospital Statistics for the Year Ended March 31, 2 Departmental Volume Indicators: Inpatient Indicators: Patient Days 13,650 Respiratory therapy treatments Medical and surgical 51,480 Obstetrics 1,080 Physical therapy treatments 34,050 Skilled nursing unit 4,500 Laboratory workload units in thousands) 2,750 Admissions EKGs Adult acute care 3,610 CT scans 2.780 Newborn 315 MRI scans 910 Skilled nursing unit 440 Emergency room visits 11,820 Ambulance trips 2,320 Discharges Home health visits 14,950 Adult acute care 3,580 Newborn 315 Approximate number of employees Skilled nursing unit 445 (FTE) 510 8,900 Average Length of Stay (in days) 4.1 Director of Nurses TOI Finance Information Systems Support Education Recruitment Support Medical Surgical amm Ambulatory Pediatric Nursing Women's a lth